CP Group overpaying for Tesco’s Malaysia and Thai operations, analysts say

A Tesco store sign is displayed. Photo: Simone Hutsch/unsplash

CP Group’s bulge-bracket $10.58-billion deal to acquire Tesco Asia Group’s Malaysian and Thai hypermarket businesses looks pricey, analysts said.

Athaporn Arayasantiparb, the lead analyst at M Corp who publishes on SmartKarma, pulled no punches on the impact on listed entity, CP All, which is taking a 40 per cent stake in the Tesco assets. He said: “With this higher than the expected price tag, we estimate that 10.9 billion baht ($480.8 million) or 2.20 baht/share of value was destroyed.”

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