Tesco agrees to £8.2bn supermarket sell-off

Tesco has agreed a deal to sell its supermarket arms in Thailand and Malaysia in a move worth about £8.2 billion.

It said it will receive around £8 billion in cash proceeds and plans to hand £5 billion worth of this to shareholders in a one-off dividend.

Tesco has agreed to sell the south-east Asian Lotus business to CP Group, Thailand's biggest conglomerate presided over by Dhanin Chearavanont, the country's second-richest man.

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Dave Lewis, chief executive of Tesco, said: "Following inbound interest and a detailed strategic review of all options, we are announcing today the proposed sale of Tesco Thailand and Tesco Malaysia.

"This sale releases material value and allows us to further simplify and focus the business, as well as to return significant value to shareholders.

"I would like to thank all of our Tesco Thailand and Tesco Malaysia colleagues for their dedication, professionalism and service to our customers, which has resulted in the creation of such a strong business.

"I am confident that the agreement we have reached with CP Group presents an exciting opportunity for their continued success."

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