China's Sanpower confirms in talks to buy House of Fraser

HONG KONG, April 8 Tue Apr 8, 2014 6:12am EDT

HONG KONG, April 8 (Reuters) - The Shanghai-listed retail arm of Sanpower Group said on Tuesday it was in talks to buy an 89 percent stake in Britain's Highland Group Holdings, which owns department store House of Fraser.

Nanjing Xinjiekou Department Store said it planned to set up a subsidiary in Britain to acquire Highland Group.

It planned to fund the deal through internal sources and bank loans, although no value was provided. The company made the announcement in a statement to the Shanghai stock exchange.

The news comes after Reuters reported on Friday that Sanpower Group had agreed to buy an 89 percent stake in Britain's House of Fraser in a deal that valued the department store at over 450 million pounds ($746 million), including debt, citing a source close to the deal. (Reporting By Donny Kwok; Editing by Anne Marie Roantree and Miral Fahmy)