China retail giant raises $1.06 bln in Hong Kong IPO (AFP)

HONG KONG (AFP) – China's leading hypermarket operator Sun Art Retail Group has raised $1.06 billion in a Hong Kong share sale, defying recent volatility in the world's biggest IPO market.

The retail giant, backed by France's Groupe Auchan SA, has sold 1.14 billion shares at HK$7.20 (93 US cents) each, the top end of its price range, Dow Jones Newswires said, quoting an unnamed source.

The firm, which will start trading in Hong Kong on July 15, has an option to increase the offering by 15 percent if the shares are oversubscribed, which will boost the deal to $1.2 billion.

Company executives have said they were positive on the share sale and planned to use half of the proceeds to open 51 stores in mainland China by the end of next year.

Sun Art currently has 197 hypermarkets in China.

The group, previously known as Sun Holdings Greater China Ltd, is a joint venture between Taiwanese supermarket-to-cement conglomerate Ruentex Group and Groupe Auchan.

The offering, the latest bid by a Chinese firm to tap Hong Kong's IPO market -- the world's biggest in 2010 for the second year in a row -- comes despite a batch of weak new listings.

Some firms have recently decided to delay or cancel their listings in Hong Kong citing turmoil global markets.

Italian luxury goods maker Prada made a lacklustre debut in the financial hub in June after raising a lower-than-expected $2.14 billion in its share sale.

And Australian miner Resourcehouse also last month shelved an IPO originally slated to raise as much as $3.6 billion, citing weak market conditions.

Home Retail Group buys Habitat UK (AFP)

LONDON (AFP) – Britain's Home Retail Group on Friday said it had bought the Habitat UK brand and three of its London furniture stores for £24.5 million from US private equity firm Hilco.

HRG, which owns catalogue chain Argos and home improvements chain Homebase, agreed to pay the equivalent of $39 million or 27.5 million euros after the upmarket Habitat chain was placed in administration to save it from bankruptcy.

"Home Retail Group (HRG) today announces that it has agreed to acquire certain rights to the Habitat brand, one of the UK's leading contemporary home retailers," it said in a statement.

"The rights are for the exclusive use of the Habitat brand, its brand designs and intellectual property in the UK and the Republic of Ireland.

"In addition, Home Retail Group is also acquiring the Habitat UK website, three of its London stores and certain brand support functions."

At the same time, Habitat UK has applied to go into administration -- the process whereby a troubled company calls upon independent financial help in a bid to restructure the business and remain operational.

The announcement threatens the chain's 30 other British stores and around 900 jobs.

Separately, Hilco said it was in "advanced" talks over the sale of the Habitat business outside of Britain.

The profitable European division includes 27 stores in France, five in Germany and six in Spain, with franchise arrangements in Belgium and Luxembourg.

Habitat, set up by designer Terence Conran in 1964, epitomised London's young and trendy image in the 1960s with a range of pastel colours and products based on his designs.

"The style led credentials of the Habitat brand, with its strong heritage, will be a significant addition to the group's portfolio of own brands," HRG chief executive Terry Duddy said on Friday.

"In addition to operating the three London stores and the UK website, we will introduce Habitat products across the group, including a number of concessions in Homebase stores."

Home Retail Group buys Habitat UK (AFP)

LONDON (AFP) – Britain's Home Retail Group on Friday said it had bought the Habitat UK brand and three of its London furniture stores for £24.5 million from US private equity firm Hilco.

HRG, which owns catalogue chain Argos and home improvements chain Homebase, agreed to pay the equivalent of $39 million or 27.5 million euros after the upmarket Habitat chain was placed in administration to save it from bankruptcy.

"Home Retail Group (HRG) today announces that it has agreed to acquire certain rights to the Habitat brand, one of the UK's leading contemporary home retailers," it said in a statement.

"The rights are for the exclusive use of the Habitat brand, its brand designs and intellectual property in the UK and the Republic of Ireland.

"In addition, Home Retail Group is also acquiring the Habitat UK website, three of its London stores and certain brand support functions."

At the same time, Habitat UK has applied to go into administration -- the process whereby a troubled company calls upon independent financial help in a bid to restructure the business and remain operational.

The announcement threatens the chain's 30 other British stores and around 900 jobs.

Separately, Hilco said it was in "advanced" talks over the sale of the Habitat business outside of Britain.

The profitable European division includes 27 stores in France, five in Germany and six in Spain, with franchise arrangements in Belgium and Luxembourg.

Habitat, set up by designer Terence Conran in 1964, epitomised London's young and trendy image in the 1960s with a range of pastel colours and products based on his designs.

"The style led credentials of the Habitat brand, with its strong heritage, will be a significant addition to the group's portfolio of own brands," HRG chief executive Terry Duddy said on Friday.

"In addition to operating the three London stores and the UK website, we will introduce Habitat products across the group, including a number of concessions in Homebase stores."