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Tesco meets conditions for sale of Thai & Malaysian businesses
9th Dec 2020 08:06
(Sharecast News) - Tesco has now met all the conditions for the sale of its businesses in Thailand and Malaysia and the disposal is expected to complete later this month, paving the way to a special dividend for shareholders.
The supermarket retailer announced in March that it had agreed to sell the businesses to CP Retail Development Company and that £5bn of the net proceeds from the sale would be returned to shareholders via a special dividend. The company will also make a pension contribution of £2.5bn.
It said in a statement on Wednesday: "Tesco is pleased to confirm that CP Group has now reviewed and is satisfied with the formal notice of approval from the Office of Trade Competition Commission in Thailand.
"This, combined with the approval received from the Ministry of Domestic Trade and Consumer Affairs in Malaysia on 10 November, means there are no further conditions outstanding and the disposal is expected to complete on or around 18 December."
Chief executive officer Ken Murphy said the sale allows Tesco "to focus on our businesses across Europe and to continue delivering for customers, make a significant contribution to our pension deficit and return value to shareholders".
Broker Shore Capital said: "We see this as important and very good news for Tesco's shareholders. Whilst a jewel in the group's crown and a source of ongoing organic operating growth, the proceeds from the Asia disposal are being put to good use by Tesco in our view, which we believe shareholders will warmly welcome."
The supermarket retailer announced in March that it had agreed to sell the businesses to CP Retail Development Company and that £5bn of the net proceeds from the sale would be returned to shareholders via a special dividend. The company will also make a pension contribution of £2.5bn.
It said in a statement on Wednesday: "Tesco is pleased to confirm that CP Group has now reviewed and is satisfied with the formal notice of approval from the Office of Trade Competition Commission in Thailand.
"This, combined with the approval received from the Ministry of Domestic Trade and Consumer Affairs in Malaysia on 10 November, means there are no further conditions outstanding and the disposal is expected to complete on or around 18 December."
Chief executive officer Ken Murphy said the sale allows Tesco "to focus on our businesses across Europe and to continue delivering for customers, make a significant contribution to our pension deficit and return value to shareholders".
Broker Shore Capital said: "We see this as important and very good news for Tesco's shareholders. Whilst a jewel in the group's crown and a source of ongoing organic operating growth, the proceeds from the Asia disposal are being put to good use by Tesco in our view, which we believe shareholders will warmly welcome."