Expert Corporate Governance Service (ECGS)
EUR 1000.00 For Business Accounts Only

Tesco – AGM 14 May 2020

The general meeting is convened to approve a disposal of Tesco Thailand and Tesco Malaysia businesses to a Thai Charoen Pokphand Group. The disposal represents an enterprise value of £8.2bn, corresponding to an EV/EBITDA multiple of 11.3x based on FY2019/20 or 12.5x based on FY2018/19. The expected net cash proceeds are £8.0 billion before tax and other transaction costs. Tax and other transaction costs are expected to be c. £0.1 billion.


Tescons indebtedness has become unbearable and the group needs urgent action in light of the Covid-19 uncertainty. However, we do not agree that the disposal of the growing and profitable business in a promising market is the best solution which will lead to sustainable value creation. ECGS considers that Dave Lewis, the group CEO who is about to leave the group, made a mistake by reintroducing the dividend distribution in 2017/18 before strengthening the groupns financial situation by reducing its indebtedness. We would recommend to halt the dividend and issue shares with pre-emptive rights. Based on our concerns about the sustainability of the proposal for long-term value creation, we recommend to OPPOSE.

Tesco PLC

Tesco is a retailer. Co. and its subsidiaries are engaged in retailing and associated activities in the U.K. and Republic of Ireland; and Czech Republic, Hungary, Poland, Slovakia, Malaysia, and Thailand. Co. provides retail banking and insurance services through Tesco Bank in the U.K. Co. sells and services of motor and home insurance policies underwritten by Tesco Underwriting Limited, or in a minority of cases by a third-party underwriter. As of Feb 25 2017, Co. had a total of 6,809 stores worldwide, including 256 franchised stores.


Founded in 1995, Proxinvest is an independent proxy firm supporting the engagement and proxy analysis processes of investors. Proxinvest mission is to analyse corporate governance practices and resolutions proposed at general meetings of listed firms.

Proxinvest main services are :

  • ​Proxy reports
  • Definition and monitoring of client customized voting guidelines
  • Corporate Governance Data and Rating
  • Thematic research
  • Engagement support

Proxinvest has been a pioneer and champion of good corporate governance and has grown into a recognised expert in the field.

Proxinvest is independently-owned and only works for investors : Proxinvest does not provide consulting services to the companies it covers, mitigating related risks to its clients and ensuring the independence of our analysis. As a result Proxinvest is able to take a robust, independent, engaged and unconflicted view of the companies in which our clients invest.

As Managing Partner of Expert Corprate Governance Service Ltd (ECGS), Proxinvest has built a large network of corporate governance experts to support clients in corporate governance analysis worldwide. 

Expert Corporate Governance Service (ECGS)

Other Reports on these Companies
Other Reports from Proxinvest
Other Reports from these Analysts

ResearchPool Subscriptions

Get the most out of your insights

Get in touch