UK Supermarket Giant Tesco Sells Thai and Malaysian Divisions in £8bn Deal

  • UK supermarket giant Tesco sells Asian operations in Thailand and Malaysia in £8bn deal
  • CP Group acquires over 2,000 stores under Tesco and Lotus brands
  • £5bn to be returned to shareholders via special dividend and share consolidation
  • £2.5bn pension contribution to reduce funding deficit
  • Deal completion expected in H2 2020, subject to shareholder approval and regulatory approvals

UK supermarket giant Tesco has agreed to sell its operations in Thailand and Malaysia in a £8bn deal. The portfolio of over 2,000 stores under the Tesco and Lotus brands has been acquired by Thai conglomerate CP Group. The board of Tesco intends to return £5bn to shareholders via a special dividend with associated share consolidation. The money will also be used for a £2.5bn pension contribution, reducing its funding deficit and significantly reducing the need for further pension deficit contributions in the future. The disposal has been unanimously agreed by the Tesco board but is subject to shareholder approval and customary regulatory approvals in Thailand and Malaysia. It is expected to be completed during the second half of 2020. Tesco CEO Dave Lewis thanked employees for their dedication and professionalism, stating that the agreement with CP Group presents an exciting opportunity for continued success.

Factuality Level: 10
Factuality Justification: The article provides accurate and objective information about Tesco’s deal to sell its Asian operations in Thailand and Malaysia to CP Group, the intended use of the £5bn returned to shareholders, and the CEO’s statement on the matter.
Noise Level: 3
Noise Justification: The article provides relevant information about Tesco’s sale of its Asian operations and the benefits it brings to the company, including returning value to shareholders and reducing debt. It also includes a statement from the CEO expressing gratitude towards employees and confidence in the buyer’s ability to continue the success of the business.
Financial Relevance: Yes
Financial Markets Impacted: Tesco shares, CP Group, financial markets in Thailand and Malaysia
Financial Rating Justification: The article discusses the sale of Tesco’s Asian operations, which will impact the company’s financial situation and potentially affect the stock prices of both Tesco and CP Group. It also mentions the return of £5bn to shareholders and a pension contribution, which can influence financial markets in the respective countries.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.

Reported publicly: www.retailsector.co.uk