Tesco raises £379m for Thai expansion

GROCERY giant Tesco has raised £379 million on Thailand’s stock market to expand its chain of Lotus supermarkets in the South-East Asian country.

The Tesco Lotus property fund was Thailand’s largest commercial property initial public offering (IPO) and its largest IPO since 2006.

The fund includes 17 shopping centres that contain Tesco Lotus supermarkets in cities including the capital, Bangkok, and tourist destinations such as Krabi and Koh Samui.

After issuing a shock profits warning in January, Tesco has been looking to beef up its presence in fast-growing markets in Asia, such as Thailand.

News of the IPO came as Tesco unveiled plans to create 20,000 jobs in the UK as the chain looks to rebuild confidence in its core supermarkets business. Analysts at Shore Capital said the jobs will “improve in-store services”.