House of Fraser takeover not imminent despite C Banner saying it may acquire stake
A takeover of the UK-based department store chain House of Fraser is not imminent despite Hong Kong footwear retailer C Banner saying that it may take a stake in House of Fraser’s holding company Highland Group, The Sunday Times reported. The newspaper cited a source close to House of Fraser, who added that C.Banner’s talks with House of Fraser’s owner Nanjing Xinjiekou would have no effect on business at the department store chain.
C.Banner issued a Hong Kong stock exchange announcement last week saying it intends to open China’s first Hamleys store in Nanjing in September inside House of Fraser’s flagship store. The partnership could lead to C.Banner buying a shareholding in Highland Group Holdings, according to the announcement. However, C.Banner added that there is as yet no agreement regarding the sale of a stake.
Nanjing Xinjiekou is the listed holding company for Yuan Yafei, leader of Sanpower, a conglomerate that acquired Hamleys last year.
The Sunday Times article noted that Yuan’s brother-in-law Chen Yixi is head of C.Banner