Sime Darby Berhad (SDB) today announced that its wholly-owned subsidiaries Sime Darby Allied Products Berhad and Sime Darby Holdings Berhad have entered into conditional agreements with C.P. Retail Development Company Limited, Tesco Holdings B.V. and Tesco PLC to divest its 30 per cent stake in Tesco Stores (Malaysia) Sdn Bhd for RM300 million.
The disposal is part of a larger deal between Tesco PLC and Thailand’s C.P. Group (CP) signed in March 2020, to sell Tesco PLC’s businesses in Thailand and Malaysia to CP for an enterprise value of US$10.6 billion.
SDB expects an estimated net gain on disposal of RM270 million from the sale of its stake in Tesco Malaysia, a joint venture it has held since 2001.
“We have come a long way with our joint-venture with Tesco. We opened our first store in Puchong in 2002. We have grown the business over the years and now have 69 stores nationwide.”
“This deal provides SDB with an opportunity to exit the non-core hypermarket business at a reasonable valuation. This transaction is part of our ongoing efforts to rationalise our non-core assets,” said SDB Group Chief Executive Officer Dato’ Jeffri Salim Davidson.
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.
For further information, please contact:
Tan Yee Pheng
Sime Darby Berhad