British retail giant Tesco has agreed to sell its Thai and Malaysian operations for £8.2bn. There are around 2,000 stores and 60,000 employees across the two countries under the company’s Lotus brand.
Thai conglomerate CP Group acquired the stores, and £5bn of the sales will be returned to shareholders via a special dividend.
Tesco revealed at the end of 2019 that it had received interest for its stores in those countries, but did not reveal the bidders.
Dave Lewis, Chief Executive of Tesco, said: “Following inbound interest and a detailed strategic review of all options, we are announcing today the proposed sale of Tesco Thailand and Tesco Malaysia. This sale releases material value and allows us to further simplify and focus the business, as well as to return significant value to shareholders.
“I would like to thank all of our Tesco Thailand and Tesco Malaysia colleagues for their dedication, professionalism and service to our customers, which has resulted in the creation of such a strong business. I am confident that the agreement we have reached with CP Group presents an exciting opportunity for their continued success.”