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    CPALL   TH0737010Y08


End-of-day quote Stock Exchange of Thailand  -  2022-08-18
61.00 THB    0.00%
08/16CP ALL : Notification of Book Closed Date and Trading Suspension of 71 DWs issued by BLS
08/15CP ALL : Resolution of the Exercise of 24 Derivative warrants issued by KGI
08/11SET ADDS NEW LISTED SECURITIES : CPALL42C2212G to be traded on August 15, 2022
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Tesco plans $6.6 billion shareholder return from Asia disposals

03/09/2020 | 08:52am EDT
An entrance of Tesco Lotus retail shop is seen in Bangkok, Thailand

Tesco plans to return $6.6 billion to shareholders after agreeing to sell its supermarket businesses in Thailand and Malaysia to Charoen Pokphand Group as part of plans to refocus on Britain.

Having withdrawn from South Korea in 2015, Britain's biggest retailer began a review of its remaining Asian businesses last year in a further retreat from its global ambitions.

The sale of its Thai and Malaysian businesses for an enterprise value of $10.6 billion comes more than five years into a recovery plan launched by Chief Executive Dave Lewis after an accounting scandal and dramatic trading downturn.

Lewis declared Tesco's turnaround complete last October and will step down in October this year, when he will be succeeded by Ken Murphy, formerly of Walgreens Boots Alliance.

Bernstein analyst Bruno Monteyne on Monday said that Tesco had secured "a very strong valuation" for the Thai and Malaysian assets and investors could look forward to a special dividend representing 21% of the group's current market capitalisation.

The price for the businesses, including debt, implies an enterprise value multiple of 12.5 time core earnings.

After completion of the disposal to the Thai group controlled by Dhanin Chearavanont, Tesco intends to return cash to shareholders via a special dividend with an associated share consolidation. It will also inject 2.5 billion pounds ($3.28 billion) into its pension fund.

Reuters reported on Sunday that CP Group was the frontrunner to buy the assets.

Tesco shares were down 1.3% at 1249 GMT, outperforming the blue-chip FTSE 100 index, which fell 6.9% on coronavirus fears.

"The coronavirus outbreak won't stop people from eating: on the contrary, food-at-home will get a boost at the cost of food-out-of-home," said Monteyne.


The deal is conditional on the approval of Tesco's shareholders and regulatory approvals in Thailand and Malaysia, which is expected during the second half of 2020.

However, CP Group will face a newly empowered Thai antitrust regulator, which could block the transaction if it finds that the deal would create a monopoly or market dominance, lawyers and analysts said.

CP Group is buying Tesco's assets through its CP Foods and CP ALL businesses.

"We believe the reason management has broken down the investment into small pieces is that it does not have to pass a shareholder vote and to minimise capital-raising risk as much as possible," Citi analysts said in a report.

CP Group runs its 12,000 7-Eleven convenience stores through CP All and about 80 cash-and-carry stores under Siam Makro. It will gain control of the 1,965 stores Tesco operates in Thailand - much of which the British retailer bought from CP Group during the 1997-8 Asian financial crisis - including 200 Tesco Lotus hypermarkets and 1,600 Tesco Lotus Express convenience stores, plus 74 outlets in Malaysia.

Chearavanont, senior chairman of CP Group, has repeatedly said he wanted to buy back the company.

Tesco completed its exit from China last month with the 275 million pound sale of its joint venture stake to state-run partner China Resources Holdings (CRH).

Completion of the deal for the Thai and Malaysian assets would increase speculation over the future of Tesco's central European division, consisting of stores in the Czech Republic, Hungary, Poland and Slovakia, which would be the group's only remaining overseas supermarket operation apart from Ireland.

Tesco was advised by Greenhill, Goldman Sachs and Barclays, while JPMorgan and UBS were joint international advisers and financiers for CP Group. Siam Commercial Bank and advisory firm Quant Group also worked with CP Group on the deal.

By James Davey and Chayut Setboonsarng

© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
BARCLAYS PLC -1.91% 165.28 Delayed Quote.-11.62%
CHAROEN POKPHAND FOODS 0.00% 26 End-of-day quote.1.96%
CP ALL 0.00% 61 End-of-day quote.3.39%
FTSE 100 0.11% 7550.37 Delayed Quote.2.13%
GREENHILL & CO., INC. -6.47% 8.1 Delayed Quote.-51.70%
MSCI UNITED KINGDOM (STRD) -1.49% 1067.92 Real-time Quote.-7.70%
S&P UNITED KINGDOM (PDS) 0.17% 1539.12 Real-time Quote.4.00%
SIAM MAKRO -1.44% 34.25 End-of-day quote.-18.45%
TESCO PLC 0.07% 270.9 Delayed Quote.-6.55%
THAI CAPITAL CORPORATION -2.22% 0.88 End-of-day quote.-24.79%
TRUE CORPORATION 0.41% 4.86 End-of-day quote.1.67%
WALGREENS BOOTS ALLIANCE, INC. -0.05% 38.22 Delayed Quote.-26.73%
All news about CP ALL
08/16CP ALL : Notification of Book Closed Date and Trading Suspension of 71 DWs issued by BLS
08/15CP ALL : Resolution of the Exercise of 24 Derivative warrants issued by KGI
08/11SET ADDS NEW LISTED SECURITIES : CPALL42C2212G to be traded on August 15, 2022
08/11CP ALL PUBLIC : Resolution of the Exercise of 34 Derivative warrants issued by FSS
08/11CP ALL PUBLIC : Resolution of the Exercise of 75 Derivative warrants issued by YUANTA
08/10CP ALL PUBLIC : Notification of the Resolutions of the Board of Directors' Meeting No.6/20..
08/10CP ALL Public Company Limited Reports Earnings Results for the Second Quarter and Six M..
08/03SET ADDS NEW LISTED SECURITIES : CPALL13C2212A to be traded on August 4, 2022
07/14CP ALL PUBLIC : Resolution of the Exercise of 17 Derivative warrants issued by KGI
07/11CP ALL PUBLIC : Resolution of the Exercise of 11 Derivative warrants issued by KKPS
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Analyst Recommendations on CP ALL
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Sales 2022 817 B 22 852 M 22 852 M
Net income 2022 16 099 M 450 M 450 M
Net Debt 2022 290 B 8 122 M 8 122 M
P/E ratio 2022 37,1x
Yield 2022 1,36%
Capitalization 548 B 15 321 M 15 321 M
EV / Sales 2022 1,03x
EV / Sales 2023 0,93x
Nbr of Employees -
Free-Float 60,0%
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Technical analysis trends CP ALL
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Income Statement Evolution
Mean consensus BUY
Number of Analysts 21
Last Close Price 61,00 THB
Average target price 74,53 THB
Spread / Average Target 22,2%
EPS Revisions
Managers and Directors
Yuthasak Poomsurakul Chief Executive Officer
Kriengchai Boonpoapichart Chief Finance Officer, SVP-Accounting & Finance
Soopakij Chearavanont Chairman
Wiwat Pongritsakda Vice President-Information Technology
Thupthep Jiraadisawong Senior Vice President-Operation
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