Tesco sells its south-east Asian operations for $10.6bn to Charoen Pokphand

Tesco agrees to sell its south-east Asian operations for $10.6bn

Tesco has agreed to sell its south-east Asian operations for $10.6bn in cash to Charoen Pokphand, making it Asia’s largest corporate acquisition in the year to date and the biggest in Thailand’s history.

Tesco said the sale would return about £5bn to shareholders via a special dividend, and pay £2.5bn into its defined-benefit pension schemes to eliminate their deficits, According to Dave Lewis Tesco’s CEO  “ This sale releases  material value and allows us to further simplify and focus the business  as well as return significant value to shareholders.”

For Tesco selling its 2000 stores in Thailand and 74 in Malaysia marks the final stage of the UK retailers’ exit from Asia.

In 2005, Tesco sold its South Korean HomePlus business.

Last month Tesco said it would sell its 20 per cent stake in Gain Land to China Resources, its joint venture partner.

Tesco, however, retains central European operation with stores in Hungry,  the Czech Republic, Slovakia, and Poland.