CP Group says keen to buy Tesco's Thai operations if put up for sale
By Khettiya Jittapong
BANGKOK (Reuters) - Charoen Pokphand Group (CP), Thailand's largest agribusiness conglomerate, is keen to buy Tesco Plc's operations in the Southeast Asian nation if the British retailer decides to sell, the group's chairman said on Monday.
Dhanin Chearavanont, the country's second-richest man, told reporters he was approached by several bankers about Tesco's assets, but has not been involved in any discussion with Tesco executives. The Thai operations are estimated by analysts to be worth about $10 billion (6.39 billion pounds).
"We are keen to buy if Tesco decides to sell," he said.
Dhanin sold the supermarket chain - Tesco Lotus - to Tesco more than 15 years ago during the Asian financial crisis. He has had informal talks with a domestic bank to explore a bid for Tesco Lotus, whose 1,737 shops represent nearly three-fourths of all Asia outlets of the accounting scandal-hit British retailer, a source had said.
"They helped us during the crisis. When they have a problem, we should help them," Dhanin said adding the Thai operation was "like his child" and CP had to sell a "good asset" to save the group's core business during the 1997-1998 Asian financial crisis.
The British retailer, whose shares are down 42 percent this year, has not announced plans to exit any Asian markets. Tesco's new CEO Dave Lewis, in the job for less than three months, is battling an accounting scandal and a severe slowdown in sales at home.
On another deal where there has been speculation about CP Group's involvement, Dhanin said the group had been in talks to buy a stake in LH Bank PCL, which is owned by LH Financial Group, but no deal was reached.
Dhanin, whose businesses now span farms, grain trading, foods, retail, real estate, auto, banking and telecommunications, said CP Group is also looking for opportunities to buy assets overseas.
In 2013, CP Group emerged as a surprise buyer for global bank HSBC Plc's $9.4 billion stake in Ping An Insurance Group Co of China Ltd.
(Additional reporting by Manunphattr Dhanananphorn; Writing by Viparat Jantraprap; Editing by Muralikumar Anantharaman)
