Don McCarthy, retiring executive chairman of House of Fraser, has announced the completion of the sale of 100 per cent of the preferred ordinary shares and B ordinary shares and approximately 89 per cent of the A ordinary shares and preference shares of Highland Group Holdings Ltd (House of Fraser), to Nanjing Xinjiekou Department Store Co. Ltd. (Nanjing Cenbest) a leading chain of Chinese department stores for an enterprise value of approximately £480 million.
Yan Yafei, chairman of Sanpower group, the largest shareholder of Nanjing Cenbest, said “We are delighted to have completed the purchase of House of Fraser today. It is an unprecedented transaction and the largest acquisition of a foreign retailer by a Chinese listed company. We are excited to tap the significant opportunities that House of Fraser has in China, where the brand has very strong growth potential.”
Te Board notes that the remaining shareholding of approximately 11 per cent of House of Fraser is currently held by West Coast Capital (Hofco) Limited, a subsidiary of Sports Direct Group, and that this shareholding does not have the right to a Board position. Nanjing Cenbest offered to acquire this shareholding on the same terms as the acquisition but no agreement was finalised.
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