The Board of Directors of Charoen Pokphand Foods Public Company Limited or “CPF” resolves to approve the investment by C.P. Merchandising Co., Ltd. (“CPM”) – CPF’s wholly owned subsidiary – to acquire shares or economic interest of up to 20 percent of total issued shares in Tesco Asia Group, which is a leading retailer under Tesco Lotus brand in Thailand and Malaysia, with CPM’s investment in the holding company setting up for the Tesco Asia Group Investment Transaction to be worth approximately USD 1.5 billion or THB 47.991 billion

Mr. Prasit Boondoungprasert, Chief Executive Officer, said that CPF’s investment in Tesco Asia is aimed to further strengthen its value chain in term of distribution channels in Thailand and Malaysia and enhancing the range of consumer options in this space. CPF is planning to modernize its distribution channels of meat products to better suit with consumers’ behaviour. CPF is confident that the investment presents exciting opportunities for enhancing Thai and Malaysian consumer experiences in an already highly competitive sector.

This joint investment will boost sales of both Tesco and CPF. Given the fact that Tesco Asia has been enjoying the strong operating results consistently, coupled with its highly experienced management and operating teams capable of adapting to changing business and market environment, CPF firmly believe that this investment with Tesco Asia will further enhance the already impressive operating results.

It should be noted that the investment is subject to the full satisfaction of conditions precedent, including obtaining the resolution of shareholders’ meeting of Tesco UK approving the sale of shares in Tesco Asia Group, the approval of the Office of the Trade Competition Commission (where an application for approval is to be submitted) and the approval of the Ministry of Domestic Trade and Consumers Affairs of Malaysia in respect of the relevant transaction in Malaysia. The transaction is expected to be concluded by the end of 2020.