Sanpower-owned department store Nanjing Xinjiekou has issued a statement to the Shanghai Stock Exchange confirming it has completed talks to buy 89% of House of Fraser - but the deal has still not been finalised.
According to the statement, Nanjing Xinjiekou plans to set up a unit in UK for the acquisition, which will be paid in cash with its own capital and debt.
Despite the delay, there seemed to be no chance that the deal could be derailed by the row over the 11% stake sold by Sir Tom Hunter to Sports Direct a couple of days after all the other shareholders agreed to the Chinese deal.
Last Sunday drapersonline.com broke the story that Sports Direct was minded to sell the 11% stake to Sanpower, but only at a profit.
HoF insists that the purchase price values the business at “over £450m”, but it is not known, if correct, how much of this accounts for debt and pension deficit.
In its last accounts, to January 2013, HoF revealed net debt of £157m and a pension deficit of £46.9m. HoF has 61 stores in the UK and Ireland.