Premium department store group House of Fraser is in discussions with a Chinese multi-millionaire to sell the business for £450m.
The proposed takeover, first reported by the Sunday Times, was tabled by the Chinese conglomerate Sanpower founded by Yuan Yafei. Sanpower owns one of China’s oldest and largest department stores – the Nanjing Xinjiekou - which was the first ever company in Nanjing to be publically listed. Yafei has built a business across retail estate, retail and technology sectors.
The group, which trades from 61 stores in the UK and Ireland, has been considering a possible initial public share offering and ended talks with French business Galarie Lafayette in January.
House of Fraser refused to comment but a Sanpower spokesperson confirmed that talks were ongoing.
The group posted its highest ever gross profit figures for the 52 weeks to 26 January 2013 which rose £4.7m to £403.8m.