Keep a Close Eye on CPALL and BJC for Tesco First Round Bidding in Mid-Jan

The analyst advises investors to keep a close eye on the share price of CP All Public Company Ltd. (CPALL) and Berli Jucker Public Company Ltd. (BJC) as the first round bidding for Tesco Asian supermarket operations is expected to due mid-January, citing people familiar with the matter. After Tesco announced selling all the stores in Thailand and Malaysia, many Thai tycoons showing their interest to buy, including TCC Group, the major shareholders of BJC, Charoen Pokphand Group and Central’s Chirathivat Group.

Tesco said in December that it is carrying out a strategic review of its Thai and Malaysian businesses after receiving interest. A sale of the Asian operations would allow the supermarket chain to get an infusion of cash to continue a restructuring of its core U.K. business that has cut thousands of jobs.

Currently, the estimated value of Tesco in Thailand is approximately 10,000 million dollars or around 300,000 million baht.

Tesco has more than 2,000 hypermarkets and convenience stores in Thailand under the “Tesco Lotus” brand. The chain was founded by CP Group in 1994 and later taken over by the British firm, according to its company website. In Malaysia, Tesco has over 70 shops, according to its annual report. Malaysian conglomerate Sime Darby Bhd owns a 30% stake in Tesco Malaysia.

However, many investors have expressed their concern because of the possible high cost of bidding which might affect the financial statement of those companies.

As of 16:13 local time in Thailand, the share price of BJC was at 41.75 baht per share, increased 0.75 baht per share or 1.83% with a trading value of 233 million baht. Meanwhile the share price of CPALL was at 71.50 baht per share, rose 0.50 baht per share or 0.70% with a trading value of 1.8 billion baht.