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Thailand Retail Property Tesco Giant Eyed Up by CP

By on Nov 25, 2014 in Retail

711715Thailand’s second-richest man is considering buying back his company’s former stake in Tesco Lotus, which has grown into a $10 billion company, a report said Wednesday. Billionaire Dhanin Chearavanont has begun informal talks with an unnamed Thai bank to explore a bid a controlling interest in Tesco Lotus, which he sold 15 years ago, Reuters’ Dealtalk reported, quoting, a person with direct knowledge of the situation.

Dealtalk said other investment banks also have approached Mr Dhanin to offer finance and advice on the deal. The bid would be made through Mr Dhanin’s Charoen Pokphand Group, which sold a controlling interest in Lotus to the UK’s Tesco in 1998. If successful, Lotus would be the second big retail business Mr Dhanin has bought back.

Euromonitor predicts Thailand’s grocery market will grow 35% to $72 billion by 2019. If Tesco Lotus achieved 6.2% revenue growth in 2015, the chain’s sales would total $6.4 billion.

Tesco’s chief executive Dave Lewis recently told the media that the company was considering several options to pull itself out of the biggest crisis in its history, including a sale of all assets globally, a sale of its business in Asia and raising capitals through partnership deals.

Mr Dhanin and CP likely wouldn’t be the only suitors for Tesco Lotus, however. Central Group and Thai Beverage, two of the country’s richest business groups, are said also to have expressed interest in buying Tesco’s assets in Asia.

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