House Of Fraser Bought By Chinese Tycoon

A Chinese tycoon has bought British high street chain the House of Fraser, according to sources.

Reuters said a 89% stake was bought by Sanpower, a Nanjing-based conglomerate controlled by Yafei Yuan.

Sources have told Sky News an announcement is expected imminently.

House of Fraser will now seek strategic growth in mainland China as part of a wider, global expansion.

The deal values the department stores at more than £450m.

The two sides are thought to have been in secret discussions for several months.

This follows a protracted search for investors led by House of Fraser's chairman, Don McCarthy.

Just months ago the company was tipped for a public flotation.

But Sky News City Editor Mark Kleinman reported in February that Mr McCarthy apparently had no desire to chair a publicly-listed company.

Sports Direct and Newcastle United owner Mike Ashley was also tipped as a making a possible move for the company.

The British group enjoyed strong Christmas trading, with like-for-like sales at its 61 stores up more than 7% during the three weeks to December 28 and more than 4% in the nine weeks to the same date.

Established during the 1850s, House of Fraser was taken private in 2006 for £351m by a consortium led by Baugur alongside Mr McCarthy and entrepreneur and philanthropist Sir Tom Hunter.