Tesco invites Thai tycoons to 2nd round of bidding for Asia unit
Britain’s largest supermarket chain Tesco Plc is inviting Thai tycoons to the second round of bidding for its operations in Thailand and Malaysia that could fetch more than US$7 billion, according to sources.
Thai billionaire Dhanin Chearavanont’s Charoen Pokphand Group and Central Group, controlled by the Chirathivat family, were picked to proceed with deadline for the bids due in the next few weeks, said the people.
Tycoon Charoen Sirivadhanabhakdi’s TCC Group had also been chosen, said the people.
Tesco said in December it was carrying out a strategic review of its Thai and Malaysian businesses after receiving interest.
A sale of the Asian operations would allow the supermarket chain to get an infusion of cash to continue a restructuring of its core United Kingdom business that has cut thousands of jobs.
Tesco has more than 2,000 hypermarkets and convenience stores in Thailand under the “Tesco Lotus” brand.
The chain was founded by CP Group in 1994 and later taken over by the British firm, according to its company website.
In Malaysia, Tesco has more than 70 outlets, according to its annual report.
Sime Darby Bhd owns a 30 per cent stake in Tesco Malaysia.
Last month, Thailand’s antitrust office established a special committee to evaluate the impact of the potential Tesco deal as a sale might lead to a monopoly or a business that has power over the country’s retail sector.