A Chinese conglomerate has reached an agreement to purchase nearly 90 percent of Britain's iconic retailer House of Fraser.
Nanjing-based Sanpower, one of China's largest privately-owned business conglomerate, will spend around 740 million US dollars.
Reports suggest Sanpower is planning to inject between 116- and 133-million dollars into House of Fraser to finance a wide-ranging store revamp and website improvements.
It may also take the department store into China by opening new stores or rebranding existing sites as House of Fraser.
Sanpower is run by Yuan Yafei, whose empire spreads across finance, property, IT and now employs 30 thousand people. The company has assets worth nearly 8 billion US dollars.
House of Fraser, which has 61 locations, generates nearly 2 billion US dollars in revenue per year and employs 7 thousand 3 hundred people.
For more on this, we're joined live now by Mike Bastin, Visiting Professor of China's University of Economics and Business.
Questions:
--French retailer Galeries Lafayette had long been engaged in a takeover attempt of Fraser, and failed. Why sell to Sanpower instead?
--What does this deal do for Fraser, in terms of its business development here in China? Where do you think will be the test area for Sanpower and Fraser to collaborate, online shopping perhaps?
--How will the deal influence HoF's plan to get listed by the end of this year?
--Sanpower has made a series of merger & acquisition moves recently. Will this continue? What's their end game?
--The deal is the latest in a string of high-profile British companies and assets to be puchased by Chinese firms. (Previous acquisitioins include China's Geely buying Manganese Bronze, and Wanda acquiring Sunseeker,a luxury yacht firm, etc.) What in particular in the UK has been attracting Chinese investors? Do you see such a trend may continue?
Mike Bastin, Visiting Professor of China's University of Economics and Business.
