Thai billionaire Dhanin mulls USD 10bn Tesco Lotus buyback
Thai billionaire Dhanin Chearavanont is mulling a bid for Tesco Lotus, the Thai unit of UK-listed retail giant Tesco that currently is valued at approximately USD 10bn, according to a newswire report.
Reuters, citing a person who has direct knowledge of the matter, reported that the controller of retail group Charoen Pokphand Group (CP) was in informal discussions with a local bank to look into the possibility of making a bid for Tesco Lotus, whose 1,737 outlets account for almost three-fourths of the Asian network of Tesco.
Should a bid be made, it would be done through the CP Group, the person said, adding that CP is interested to acquire Tesco’s Thai unit.
Dhanin has been approached by investment banks offering advice and finance for the deal, the sources added.
Tesco had acquired a controlling stake in Lotus from Dhanin in 1998 for GBP 206m, as reported.
The British retailer, which is facing an accounting scandal, has not disclosed plans to exit any of its Asian markets, which also includes Malaysia, South Korea and India, the item noted.
Source Newswire Round-up