SINGAPORE/BANGKOK: Charoen Pokphand (CP) Group said on Monday its board approved a deal for its subsidiaries to buy up 86.9% of the Thai business of British retailer Tesco and 100% of the retailer's Malaysian business in a deal valued at US$10.6 billion (334 billion baht).
The Thai group said the transaction is subject to anti-trust approvals from Thai regulators.
Citing sources, Reuters reported on Sunday that CP was the frontrunner to buy Tesco's Thai and Malaysian assets in a potential deal that could be worth just over $10 billion.
Following completion of the disposal, Tesco intends to return about £5 billion (208 billion baht) to shareholders via a special dividend with associated share consolidation.