Economy

Tesco mulls exiting Thailand, Malaysia

Tesco mulls exiting Thailand, Malaysia”

LONDON, Dec 9 (Reuters) - Shares in Tesco rose more than 5% on Monday after Britain's biggest retailer said it might sell its Asian businesses, in Thailand and Malaysia, which analysts valued at up to $9 billion.

United Kingdom -based retailer Tesco PLC is considering selling its supermarket businesses in Thailand and Malaysia, in deals that could value those operations at up to $9 billion, people with knowledge of the plans said. One of the people said that Tesco could start a sale process early next year.

For the six months to August 24, Tesco's pretax profit was GBP494 million (US$649 million), compared with GBP463 million a year earlier.

An analyst at TCC Global, Bryan Roberts says that Tesco's commitment to a global footprint had looked shaky as supermarket chains across the world sold off worldwide parts of their businesses.

At a capital markets day in June, Tesco said it was well placed to grow in Asia, particularly in Thailand, where it saw an opportunity for 750 new convenience stores over the "medium term".

"That leaves the Thai business hugely undervalued as part of the group".

More news: Pensacola attack: United States to review screening of foreign military

"That in itself provides ample justification to consider a disposal, especially if there is unsolicited interest", Monteyne wrote in a note to clients.

Tesco is five years into a UK-focused recovery plan launched by chief executive Dave Lewis after an accounting scandal in 2014 capped a dramatic downturn in trading.

Lewis is leaving Tesco next year after saying he has completed the business turnaround, with designate CEO Murphy set to take over in the hot seat next summer.

Previous retreat of 2015 took place when Dave Lewis sold the south Korean business of Tesco.

Sir Terry opened in Thailand in 1998 as Tesco Lotus, launching operations in South Korea, Taiwan, Malaysia, Japan and China.

Moreover, facts reveal that the Asian business is making margins of almost six percent which is more than the three percent margins in the UK, Ireland and the central European arm that operates in Poland, Slovakia, the Czech Republic and Hungary.



Like this

loading...
loading...

Latest


09 December 2019
India's lower House passes controversial citizenship bill
The Union Cabinet, headed by Prime Minister Narendra Modi, had cleared the Bill during a crucial meeting on Wednesday. "Why do we need this Bill today? So, this Bill will give these persecuted people citizenship", Amit Shah said.

09 December 2019
Dillian Whyte in the clear as UKAD drops doping charge
It stated: "Given the circumstances, [it] couldn't have affected the battle between Mr Whyte and Mr Rivas on July 20, 2019". In the present case, UKAD considers that means that the appropriate course of action is for the charge against Mr.

09 December 2019
Baker Mayfield says Odell Beckham Jr.'s injury 'wasn't handled right'
Giving up on either is the same as the GM admitting that maybe he doesn't know as much as we all think. The focus is to win - 1-0. "So, any other questions about it, I'm not gonna answer".

09 December 2019
Check specs, price and availability
After several leaks and teasers , Chinese tech giant Vivo has finally launched the V17 smartphone in India today at Rs. 22,990. The sales of the phone will begin on December 17 through Vivo's online store, popular e-commerce sites and offline stores.

09 December 2019
76ers beat Cavs as Simmons scores career high 34
And secondly, he will be liberated. "The pull-up 2's, I'm fine with, whatever, he's open, but I'm interested in the 3-point shot". Coach Brett Brown is not surprised to see the three drop before Simmons and now wants to shoot him on a more consistent basis.

09 December 2019
Deontay Wilder blasts 'hesitant' Anthony Joshua, dismisses unification talk
I had a gameplan, I had a strategy and I wanted to follow it through. " Who wants to see a third fight? ". Joshua responded by stating his acceptance of the challenge for the third battle with Ruiz.

09 December 2019
Buzzer-beating Thunder top Timberwolves in OT
Schroder scored 25 points, Adams had 22 points and 11 rebounds, and Gallinari scored 21 points for the Thunder . In the second quarter, Minnesota outscored Oklahoma City 31-23 to take a 58-53 lead entering the half.

09 December 2019
Klopp reveals Keita talks over Liverpool role
Kane made it 4-0 in the 54th minute with his second goal of the game and turned provider for Moussa Sissoko to score Spurs' fifth. A number of points that shows that it is the worst start of the Catalan coach's campaign since he signed for Manchester City .

09 December 2019
Child left alone carries toddler half a mile in -31 degrees
She was arrested and charged with one count of first degree endangering the welfare of a minor. Troopers later arrested Julie Peter , 37, for allegedly endangering the welfare of a minor.

09 December 2019
Matt Gaetz: Rudy Giuliani recent trip to Ukraine 'weird'
In an interview with ABC News' "This Week", Gaetz said he's confident the reason for the Ukraine visit will be fully explained . Trump denied Giuliani's trip to Ukraine was at his directive.