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Tesco PLC - Conditions satisfied for sale of Asia business

RNS Number : 0406I
Tesco PLC
09 December 2020
 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION

FOR IMMEDIATE RELEASE

9 December 2020

Tesco PLC

 

TESCO CONFIRMS ALL CONDITIONS HAVE BEEN SATISFIED FOR THE SALE OF ITS BUSINESSES IN THAILAND AND MALAYSIA

Following the announcement on 9 March 2020 that Tesco had agreed to sell its businesses in Thailand and Malaysia to C.P. Retail Development Company Limited (CPRD) and further to the announcement on 6 November, Tesco is pleased to confirm that CP Group has now reviewed and is satisfied with the formal notice of approval from the OTCC 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.

Tesco Group CEO, Ken Murphy:

"I would like to thank all our colleagues in Asia for their hard work and dedication to our customers over many years. They have built a very strong business. I'm confident that the agreement with CP Group will ensure that they are well setup for continued success. This sale allows us 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."

As previously announced, Tesco intends to return c.£5 billion of the net proceeds to shareholders via a special dividend, together with a share consolidation, and will also make a significant pension contribution of £2.5 billion to the Tesco PLC Pension Scheme shortly following completion. The special dividend is expected to be paid on or around 26 February 2021, conditional on obtaining shareholder approval at a general meeting which is expected to be held on or around 11 February 2021 (the "General Meeting").

A circular containing further details of the special dividend and share consolidation, as well as a notice convening the General Meeting and further details about the resolutions to be considered at the General Meeting, will be sent to Tesco shareholders on or around 25 January 2021.

C.P. Retail Development Company Limited (CPRD) is the acquiring entity in which Charoen Pokphand Group, CP All Public Company Limited and Charoen Pokphand Foods Public Limited are invested.

Enquiries:

 

Tesco



Investor relations

Chris Griffith

+44 (0) 1707 940 900

Media

Christine Heffernan

+44 (0) 330 678 0639


Philip Gawith (Teneo)

+44 (0) 207 420 3143

 

Forward looking statements

This document contains statements which are, or may be deemed to be, "forward looking statements" which are prospective in nature. All statements other than statements of historical fact are forwardlooking statements. They are based on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forwardlooking statements. Often, but not always, forward looking statements can be identified by the use of forward looking words such as "plans", "expects", "is expected", "is subject to", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes", "targets", "aims", "projects" or words or terms of similar substance or the negative thereof, are forwardlooking statements, as well as variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Forwardlooking statements include statements relating to (a) future capital expenditures, expenses, revenues, earnings, economic performance, indebtedness, financial condition, dividend policy, losses and future prospects, (b) business and management strategies and the expansion and growth of Tesco's operations, and (c) the effects of global economic conditions on Tesco's business.

Such forwardlooking statements involve known and unknown risks and uncertainties that could significantly affect expected results and are based on certain key assumptions. Many factors may cause actual results, performance or achievements of Tesco to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements. Important factors that could cause actual results, performance or achievements of Tesco to differ materially from the expectations of Tesco, include, among other things, general business and economic conditions globally, industry trends, competition, changes in government and other regulation and policy, including in relation to the environment, health and safety and taxation, labour relations and work stoppages, interest rates and currency fluctuations, changes in its business strategy, political and economic uncertainty, including as a result of global pandemics and other factors. Such forwardlooking statements should therefore be construed in light of such factors. Neither Tesco nor any of its directors, officers or advisers provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forwardlooking statements in this document will actually occur. You are cautioned not to place undue reliance on these forwardlooking statements, which speak only as of the date hereof. Other than in accordance with its legal or regulatory obligations, Tesco is not under any obligation and Tesco expressly disclaims any intention or obligation to update or revise any forwardlooking statements, whether as a result of new information, future events or otherwise.

The release, publication or distribution of this announcement in jurisdictions other than the United Kingdom may be restricted by law and therefore any persons who are subject to the laws of any jurisdiction other than the United Kingdom should inform themselves about, and observe, any applicable requirements. The information disclosed in this announcement may not be the same as that which would have been disclosed if this announcement had been prepared in accordance with laws and regulations of any jurisdiction outside of England.

Tesco PLC's LEI number is: 2138002P5RNKC5W2JZ46

 

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