Baugur to buy House of Fraser

Baugur Group through its daughter company BG Holding and other investors has reached an agreement with British chain House of Fraser on its purchase. The take over bid was announced yesterday for 148 pence per share which equals a total purchase price of 60 billion ISK.

The offer was made under the name of Highland Acquisitions Limited, a company owned by Baugur, Don McCarthy, West Coast Capital, Kevin Stanford, Stefan Cassar and Halifax Bank of Scotland.

FL Group yesterday announced their plans to join the venture, with 13,9 percent of shares in Highland and a seat on the board. If the purchase goes forth as planned it will be valid from November 8 following a shareholders meeting on October 2.

The take over has been covered in the British press, and the Financial Times says that this is Baugur Group's largest investment in Britain so far.