House of Fraser is moving into Chinese hands in a deal that values the 165-year-old British department store chain at about £450 million (€544 million) and draws a line under an extensive sale process.

Sanpower, controlled by Chinese tycoon and former government official Yuan Yafei, has signed an agreement to buy 89 per cent of House of Fraser, according to one person familiar with the deal.

Mr Yuan is using Nanjing Xinjiekou, a Chinese department store that is one of two listed companies in the group, to purchase the stake in the department store group.

The two sides have agreed terms, with the proposed takeover valuing House of Fraser at £450 million, including a £250 million bond.

“We can bring the House of Fraser to the whole [of] China . . . That’s why we’re here today.

“House of Fraser’s shareholders and management are all very confident in us,” said Mr Yuan. – (Copyright The Financial Times Limited)