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CPF to Take 20% Stake in Tesco Aiming to expand distribution arms in Thailand and Malaysia With Tesco’s strong performance and business model as key to success

The Board of Directors ofCharoen Pokphand Foods Public Company Limited or “CPF” resolves to approve theinvestment by C.P. Merchandising Co., Ltd. (“CPM”) – CPF’s wholly ownedsubsidiary – to acquire shares or economic interest of up to 20 percent oftotal issued shares in Tesco Asia Group, which is a leading retailer underTesco Lotus brand in Thailand and Malaysia, with CPM’s investment in theholding company setting up for the Tesco Asia Group Investment Transaction tobe worth approximately USD1,500 or Baht47,991.

Mr. Prasit Boondoungprasert,Chief Executive Officer, said that CPF’s investment in Tesco Asia is aimed tofurther strengthen its value chain in term of distribution channels in Thailandand Malaysia and enhancing the range of consumer options in this space. CPF isplanning to modernize its distribution channels of meat products to better suitwith consumers’ behaviour. CPF is confident that the investment presentsexciting opportunities for enhancing Thai and Malaysian consumer experiences inan already highly competitive sector.

This joint investment will boostsales of both Tesco and CPF. Given the fact that Tesco Asia has been enjoyingthe strong operating results consistently, coupled with its highly experiencedmanagement and operating teams capable of adapting to changing business andmarket environment, CPF firmly believe that this investment with Tesco Asiawill further enhance the already impressive operating results.

It should be noted that theinvestment is subject to the full satisfaction of conditions precedent,including obtaining the resolution of shareholders’ meeting of Tesco UKapproving the sale of shares in Tesco Asia Group, the approval of the Office ofthe Trade Competition Commission (where an application for approval is to besubmitted) and the approval of the Ministry of Domestic Trade and ConsumersAffairs of Malaysia in respect of the relevant transaction in Malaysia. Thetransaction is expected to be concluded by the end of 2020.