UK retail giant Tesco has agreed to sell its operations in Thailand and Malaysia for £8bn. Chief executive Dave Lewis said the sale would allow the conglomerate to “further simplify and focus” its business. Tesco has 2,000 stores across both countries under the Tesco Lotus brand and is set to hand them over to Thai conglomerate CP Group.
Lewis said £5bn of the proceeds would be returned to shareholders via a special dividend. The company had revealed in December it had received interest for its Asian stores, which employ about 60,000 people, but did not reveal the bidders. It said the sale would also slash debt and streamline the group, enabling a “stronger focus” on UK, Irish, and central European activities.
The sale comes at a time when Lewis prepares to step down. He has cut thousands of jobs as part of a massive cost-cutting programme. Thailand's largest private company, CP Group is one of the world's biggest businesses. It owns over 10,000 Seven Eleven stores and one of Asia's largest telecommunications firms.
