12th Dec 2006 07:02
Tesco PLC12 December 2006 TESCO EXTENDS PARTNERSHIP IN CHINA Tesco has today announced an agreement to extend its successful partnership withTing Hsin in China, increasing its share from 50% to 90%. The deal, which is valued at around £180m (US$350m), will allow the partnershipto accelerate its growth in China whilst continuing to benefit from Ting Hsin'sinvaluable local knowledge. Tesco signed an agreement in September 2004 with Ting Hsin for a 50% stake inits wholly owned subsidiary of Ting Cao, which owns the Hymall chain of 44hypermarkets in China. The company has a focused strategy to grow in three keyareas - the north (including Beijing and Tianjin), the east (including Shanghai)and south (including Guangzhou). The first store in the capital Beijing is dueto open early in the New Year. Commenting on the announcement, Terry Leahy, Tesco Chief Executive, said: "Wehave seen exciting growth in China since announcing the joint venture two yearsago and are looking forward to the partnership entering a new phase. Ting Hsincontinues to be a large shareholder in the business. They are a valued supplierof food products and we benefit from their unrivalled local knowledge as we growthe Hymall business together." Ting Hsin Chairman, Wei Ying-Chiao, said: "Ting Hsin has been pleased with thejoint venture and the business development of Hymall over the last two years.As Ting Hsin focuses its efforts on its increasingly successful food business,it is appropriate at this time to review the joint venture so as to facilitatefaster progress by ensuring greater Tesco involvement." "Ting Hsin is committed to remaining a shareholder of Hymall and to provideTesco with guidance and local expertise as it currently gains experience inChina." Contacts: Press: David Cox/Greg Sage +44 (0) 1992 644454/644887 Investor Relations: Steve Webb +44 (0) 1992 644800 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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