CP's Dhanin keen on stake in Tesco Thai unit

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CP's Dhanin keen on stake in Tesco Thai unit
Kwanchai Rungfapaisarn
The Nation


DHANIN

BANGKOK: -- Dhanin Chearavanont, chairman of Charoen Pokphand, yesterday expressed keen interest in taking over Tesco's modern-trade operation in Thailand if such a deal creeps up, but added that up to now he had not been in any contact with executives from the British retail giant.

"From my point of view, I think Tesco still has good financial strength and it's not necessary to sell its Thai operation at this moment," Dhanin said.

"Many banks have offered loans to the retail giant to strengthen its liquidity," he said.

In Thailand, Tesco has just appointed a new chief executive officer and it is quite impossible for the new boss to sell the operation he has just been put in charge of, he said. Dhanin said he was interested in buying or having a certain stake in Tesco's operation in Thailand if the UK-based company really wants to sell it or requires a new joint-venture partner.

"The Tesco stores in Thailand [formerly known as Lotus] are some of my children and were sold from the CP Group's portfolio in 1997 when the company faced a serious financial crisis and wanted to save its core businesses.

"They helped us during a difficult time, and I have a policy to help them any time they demand any assistance," he said.

At present, CP Group has no stake in Tesco's operation in Thailand.

He said he was open to any new business if there was no conflict and helped strengthen the group's core businesses, such as by reducing operating costs.

He referred to the group's policy to support its upstream businesses, such as farming.

More than half of the 7-Eleven convenience stores in Thailand are owned by franchisees, and in the future they will be 100 per cent. This is in line with the group's policy to support individual investors locally.

The company had some talks to buy an interest in Land and Houses Bank, but no agreement or any due diligence has been made so far.

Dhanin expects the Thai economy to improve on this year's performance. If the Kingdom remains peaceful, the economic outlook will be optimistic, driven by bigger numbers of tourists and foreign investors, he said.

Source: http://www.nationmultimedia.com/business/CPs-Dhanin-keen-on-stake-in-Tesco-Thai-unit-30248471.html


-- The Nation 2014-11-25

[ukrules]

Such luck, there's new regulations coming our way which will force corporate restructuring in favour of Thai companies.

I wonder who's idea it was to go down this route ?

[BSJ]

That terrible photo makes Dhanin Chearavanont look 100% Chinese. Surely the Nation has one where he looks a little bit Thai???

[chooka]

Sounds like he is getting in early to clean up on free foreign businesses when the junta starts to seize them for thais with the new legislation and rules. Tesco should sell up fast and run before they are gutted.

Edited November 24, 2014 by chooka

[HiSoLowSoNoSo]

The world is not enough for some!

[apetley]

Such luck, there's new regulations coming our way which will force corporate restructuring in favour of Thai companies.

I wonder who's idea it was to go down this route ?

555 You beat me to it. Not long before they receive an offer they can't refuse.

[timewilltell]

Sounds like a coup against foreign businesses. Unfortunately Thais are rather myopic and cannot see the damage this may cause in several sectors. Anything for the immediate one time gain whilst selling everyone not involved down the river of corruption.

[siampolee]

chooka post # 5

Sounds like he is getting in early to clean up on free foreign businesses when the junta starts to seize them for thais with the new legislation and rules. Tesco should sell up fast and run before they are gutted.

Check out the business press in the U'K,. as to why Tesco may be up for grabs.Nothing to do with the proposed Thai laws.

Gross mismanagement and dubious accounting profit forecasts

[RustBucket]

chooka post # 5

Sounds like he is getting in early to clean up on free foreign businesses when the junta starts to seize them for thais with the new legislation and rules. Tesco should sell up fast and run before they are gutted.

Check out the business press in the U'K,. as to why Tesco may be up for grabs.Nothing to do with the proposed Thai laws.

Gross mismanagement and dubious accounting profit forecasts

They actually took the piss out of the consumer for too long and took their eye off the ball while Aldi, Lidl and Poundland came into force.

They tried to dabble in all sorts of business sectors not traditional to a supermarket such as banking, insurance, electronics, fuel etc.... So they could pull the rug out from under the feet the entire High St in one go and it backfired.

But anyway... Back to Thailand. Tesco would never get into bed with CP over here, they will either sell up or let it go bust. They would not sell the name.... if they sold to CP it would have to remove every trace of Tesco from the business.

Tesco will sell everything foreign to save its home market first. I am not sure CP could afford the entire Tesco operation including all its Express stores. Tesco is not Makro. It is much bigger.

[SOTIRIOS]

.......seems to be talking systematically....

[Anthony5]

I hope this never happens, because if you look how Makro's quality has deteriorated since CP took over, the writings are on the wall what will happen with Tesco Thailand in such an event.

[Anthony5]

chooka post # 5

Sounds like he is getting in early to clean up on free foreign businesses when the junta starts to seize them for thais with the new legislation and rules. Tesco should sell up fast and run before they are gutted.

Check out the business press in the U'K,. as to why Tesco may be up for grabs.Nothing to do with the proposed Thai laws.

Gross mismanagement and dubious accounting profit forecasts

They actually took the piss out of the consumer for too long and took their eye off the ball while Aldi, Lidl and Poundland came into force.

They tried to dabble in all sorts of business sectors not traditional to a supermarket such as banking, insurance, electronics, fuel etc.... So they could pull the rug out from under the feet the entire High St in one go and it backfired.

But anyway... Back to Thailand. Tesco would never get into bed with CP over here, they will either sell up or let it go bust. They would not sell the name.... if they sold to CP it would have to remove every trace of Tesco from the business.

Tesco will sell everything foreign to save its home market first. I am not sure CP could afford the entire Tesco operation including all its Express stores. Tesco is not Makro. It is much bigger.

You are aware that Tesco WAS in bed with CP prior to 1997?

[EricBerg]

... "driven by bigger numbers of tourists and foreign investors, he said."

Here we go again. Why does he think there will be more foreign investments when the junta tightens the FBA? Nobody in his right mind would start or expand in Thailand. They'll steal the bigger part of your company. And perhaps soon you can't stay in command of it.

My Thai wife owns our Thai company but she too doesn't want to expand and together we will try to move things to another Asean country or sell it.

The fools do not know they are destroying economic activity and jobs. They just aren't good enough to run things without the farangs.

This way due to future deep recession they'll lay the basis for the return of the shinclan. And the big bad guy wants to open up the Thai financial market. If that happens the Kingdom will be robbed clean within a few yearsby the big international banks.

They are like lemmings, they start running and keep running. Over the cliff and into the ocean. Instant death after that.

[ratcatcher]

That terrible photo makes Dhanin Chearavanont look 100% Chinese. Surely the Nation has one where he looks a little bit Thai???

Here's one that might make you a little happier?

Now he looks only about 70% Chinese eh? Not bad considering he is a Chinese Thai.

Since you were asking, what difference does it make what he looks like, he's as rich as Croesus anyway.

BTW, what does a Thai actually look like, is there a standard?

[Prbkk]

Oh, no concern about this: these are some of Suthep's good people and just wanting to help should the need arise. Great.

[casualbiker]

That terrible photo makes Dhanin Chearavanont look 100% Chinese. Surely the Nation has one where he looks a little bit Thai???

I thought he was 100% Chinese!

Father and Mother were Chinese.

Edited November 25, 2014 by casualbiker

[kblaze]

I hope this never happens, because if you look how Makro's quality has deteriorated since CP took over, the writings are on the wall what will happen with Tesco Thailand in such an event.

How has its quality deteriorated?

[MobileContent]

chooka post # 5

Sounds like he is getting in early to clean up on free foreign businesses when the junta starts to seize them for thais with the new legislation and rules. Tesco should sell up fast and run before they are gutted.

Check out the business press in the U'K,. as to why Tesco may be up for grabs.Nothing to do with the proposed Thai laws.

Gross mismanagement and dubious accounting profit forecasts

Well said - This has nothing to do with Thai's taking over foreign assets. Tesco was mismanaged.

[Anthony5]

I hope this never happens, because if you look how Makro's quality has deteriorated since CP took over, the writings are on the wall what will happen with Tesco Thailand in such an event.

How has its quality deteriorated?

Simply because most of the better quality products are removed from the assortment.

A few examples. Frozen fish, before it was possible to buy Alaska Pollock, which is a good fish for it's price. Since CP took over it was removed and replaced the crap Vietnamese Pangasius, which is cheap but really an inferior product.

Before CP they had an assortment of Nissin noodle soups, which is an export quality product though about 30% more expensive than the other crap. Nissin was removed from the assortment.

I can give more examples, but I suggest you do your own homework. In my book replacing better quality products with low priced items, only to get a higher turnover, but at the same time limiting the choice isn't an improvement.

[Sviss Geez]

That terrible photo makes Dhanin Chearavanont look 100% Chinese. Surely the Nation has one where he looks a little bit Thai???

Why do the facial characteristics of a man whose businesses have contributed billions to the Thai economy over many years matter?

[casualbiker]

That terrible photo makes Dhanin Chearavanont look 100% Chinese. Surely the Nation has one where he looks a little bit Thai???

Why do the facial characteristics of a man whose businesses have contributed billions to the Thai economy over many years matter?

He's also contributed to the Chinese economy

[Phuket Stan]

I hope this never happens, because if you look how Makro's quality has deteriorated since CP took over, the writings are on the wall what will happen with Tesco Thailand in such an event.

How has its quality deteriorated?

Don't know which Makro u patronise but the major one in Phuket is miles ahead of what it used to be both in product availability and service

[worgeordie]

He will just be trying to recover the assets CP had to sell off in 97,

already has Makro back,now looking at Tesco,knowing they have

problems back in the UK

regards Worgeordie

[Honkie]

That terrible photo makes Dhanin Chearavanont look 100% Chinese. Surely the Nation has one where he looks a little bit Thai???

How American should Barak Obama look? Have you got something against the Chinese or the Rich ? Or both ? in Thailad ?

[rickirs]

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chooka post # 5

Sounds like he is getting in early to clean up on free foreign businesses when the junta starts to seize them for thais with the new legislation and rules. Tesco should sell up fast and run before they are gutted.

Check out the business press in the U'K,. as to why Tesco may be up for grabs.Nothing to do with the proposed Thai laws.

Gross mismanagement and dubious accounting profit forecasts

They actually took the piss out of the consumer for too long and took their eye off the ball while Aldi, Lidl and Poundland came into force.

They tried to dabble in all sorts of business sectors not traditional to a supermarket such as banking, insurance, electronics, fuel etc.... So they could pull the rug out from under the feet the entire High St in one go and it backfired.

But anyway... Back to Thailand. Tesco would never get into bed with CP over here, they will either sell up or let it go bust. They would not sell the name.... if they sold to CP it would have to remove every trace of Tesco from the business.

Tesco will sell everything foreign to save its home market first. I am not sure CP could afford the entire Tesco operation including all its Express stores. Tesco is not Makro. It is much bigger.

I'd think that if Dhanin wanted Tesco badly enough, the Junta will do whatever is necessary to keep the company in Thai ownership. Selling to the highest bidder, ie., a foreign company, will not be an issue. Because of the Junta conrol of the government, there is nothing to prevent a monpolistic purchase by Dhanin. This would be particularly true if the Junta owed Dhanin for his support of the Junta.

[kblaze]

I hope this never happens, because if you look how Makro's quality has deteriorated since CP took over, the writings are on the wall what will happen with Tesco Thailand in such an event.

How has its quality deteriorated?

Simply because most of the better quality products are removed from the assortment.

A few examples. Frozen fish, before it was possible to buy Alaska Pollock, which is a good fish for it's price. Since CP took over it was removed and replaced the crap Vietnamese Pangasius, which is cheap but really an inferior product.

Before CP they had an assortment of Nissin noodle soups, which is an export quality product though about 30% more expensive than the other crap. Nissin was removed from the assortment.

I can give more examples, but I suggest you do your own homework. In my book replacing better quality products with low priced items, only to get a higher turnover, but at the same time limiting the choice isn't an improvement.

though im not, investors would be curious to know, thats why i asked. your examples are specific and clear

[Luxfare]

Thailand is Tesco's second largest market, their largest just suffered a 93% decrease in profit and is being hammered by the discount stores in the UK. Tescos , IF they sell will sell to strengthen their UK operation not because CP who are not anywhere near as strong pressure them. Comparing CP to Tesco (even in current plight) is like comparing oppo to Apple.

[Time Traveller]

That terrible photo makes Dhanin Chearavanont look 100% Chinese. Surely the Nation has one where he looks a little bit Thai???

Why do the facial characteristics of a man whose businesses have contributed billions to the Thai economy over many years matter?

It matters because BSJ is a racist.

[Thai at Heart]

Thailand considers tightening FBA rules.

Man this guy has some pull....

[maidee]

more pseudo food sold soon in tesco, made by CP ?