Icelandic retail investor Baugur is set to buy ladies' fashion retailer Jane Norman for more than GBP100 million in a deal backed by Icelandic bank Kaupthing.

Baugur is expected to acquire a 30 per cent - 40 per cent equity stake in the chain, with Kaupthing financing debt and equity for the transaction.

The deal is anticipated to be finalised during the next few weeks.
 
1952-established Jane Norman operates a chain of nearly 100 outlets in the form of standalone stores and concessions.Current owner Graphite Capital bought the retailer in 2003 for GBP70m.

Baugur has been prevented from making large-scale acquisitions lately due to a fraud case involving Baugur's chief executive Jon Johannesson as well as five other executives.