What's happening with TESCO ?

[Damrongsak]

2 hours ago, wordchild said:

...  prior to Tesco taking greater control, several years ago,  CP were the original partners in Tesco Lotus, so maybe there is some emotion (not strictly economics) behind the transaction; ...

The old man wanted his "child" Lotus back.  Tesco buyback a wish come true for CP Group's 80-year-old tycoon

https://asia.nikkei.com/Business/Business-deals/Tesco-buyback-a-wish-come-true-for-CP-Group-s-80-year-old-tycoon

[izod10]

12 hours ago, sandyf said:

Not been mentioned but it is being looked at in Malaysia, doesn't appear to be a done deal as yet, but more than likely.

Been on the cards since the Tesco scandal in 2014, other countries have already been abandoned, these are the last 2 outside Europe.

 

"This transaction is conditional upon the approval of the Malaysian Ministry of Domestic Trade and Consumer Affairs, the sale of Tesco BV’s shares in Tesco Malaysia and the sale of Tesco’s Thai business to CP.

“The proposed disposal is expected to complete in 2H 2020, ” it said."

 

https://www.thestar.com.my/business/business-news/2020/04/22/sime-darby-selling-tesco-stake-to-thailands-cp-retail-for-rm300m

Nothing is a done deal. A lot of wealth,shareholdings have been wiped,may not have the 8 billion to put up post covid

[wordchild]

1 hour ago, Damrongsak said:

The old man wanted his "child" Lotus back.  Tesco buyback a wish come true for CP Group's 80-year-old tycoon

https://asia.nikkei.com/Business/Business-deals/Tesco-buyback-a-wish-come-true-for-CP-Group-s-80-year-old-tycoon

Exactly. i cannot remember the exact terms, but CP (Lotus) was effectively forced to sell out (their majority) to Tesco post the Asian Financial Crisis in the early 2000's. I doubt they got more than a few of hundred million USD for their stake at the time.

Now they are buying the company back for 10 billion USD.

Smart move by Tesco! Buy low sell high, as someone once said!

PS, Tesco would have also made a ton on the relative currency moves as well.

Edited May 11, 2020 by wordchild

[sandyf]

12 hours ago, Damrongsak said:

The old man wanted his "child" Lotus back. 

What he wanted was hardly a deciding factor, a swansong for Mr Lewis?, but probably led to CP being the highest bidder.

There are 2 sides to every transaction, Tesco had their reasons for selling and in this case they were well and truly in the driving seat. The deal still has to be approved by the Tesco shareholders.

 

The retailer added that the sale would also slash debt and streamline the group, enabling a "stronger focus" on UK, Irish and central European activities.

The proposed sale was unanimously agreed by the Tesco board, but needs approval from shareholders and regulators. The deal is set to be finalised in the second half of this year.

The move comes as Mr Lewis prepares to step down this year, having overseen a major overhaul at Tesco during his five years in charge. He has cut thousands of jobs as part of a massive cost-cutting programme.

https://www.bbc.com/news/business-51796815

 

[CrunchWrapSupreme]

On 5/10/2020 at 3:35 PM, Susco said:

Who said new players were not allowed to bid? For Tesco, the highest bid is all that counts

As mentioned, there's supposed to be an anti-monopoly office in this country. Just because someone has the highest bid doesn't mean the government has to allow it. In the interest of other businesses and fair competition, if the highest bid would result in a monopoly, it could be disallowed, allowing for another bidder who ideally should have less retail exposure already, to result in less of a monopoly. Alas, that did not happen. Said anti-monopoly office, much like the anti-corruption office, is a farce.

 

This is bad for farmers, because now they'll have mostly CP to deal with. Say goodbye to a market price for sugar, because now with little to no other players, there's only whatever CP says the price is. This is also bad for SMEs, the big buzzword pushed on so many Thai commercials for banks and telephone services, expecting everyone to go out and happily start their own business. That's a little hard to do with one big company owning not only nearly all the minimarts, but now about half of all the superstores as well, next to which you should open your little shop.

[Bob A Kneale]

20 hours ago, sandyf said:

On 5/11/2020 at 10:00 AM, Bob A Kneale said:

I know.

Obviously what you don't know, brevity is the mother of ambiguity.

Obviously that depends on your ability to accurately interpret other's comments.

[pineapple01]

One thing thats happened is that their Pringles Original 107 g cans contain 30% potato crumbs, not Crisps ,now thats important not what numpty owns it..

[sandyf]

4 hours ago, Bob A Kneale said:

Obviously that depends on your ability to accurately interpret other's comments.

Now tell me where you state the deal will not be finalised till later in the year. Only the crystalballers would think that something you knew was conveyed in your comment.

 

"Nothing has happened to Tesco's branches or shops."

 

The statement was also wrong in the fact that Tesco branches and shops have been put up for sale, so something has happened.

Doesn't pay to try and be a smartxxxx.

[elgenon]

On 5/9/2020 at 11:53 PM, Estrada said:

In the begining it was Lotus owned by CP which got into financial difficulties in the 1997 financial crisis and CP sold most, but not all of its' shares to Tesco. The new company was called Tesco-Lotus with CP retaining a small share. Later stores were mainly branded as Tesco and Tesco Express. All that has happened is that CP has bought back its shares from its' partner.

 

 

Interesting. Thanks for the history lesson.