Icelandic investment group Baugur has completed its restructuring as a pure retail investor, amassing a war chest to target acquisition opportunities.

The company has agreed to sell its media, technology and financial investments to two new independent companies for a total of GBP430m (US$847m).

The deal follows the divestment of its property portfolio last year.

Baugur owns UK retailers House of Fraser and Hamleys, and has interests in Debenhams, Woolworths, French Connection, Moss Bros and Bookers.

The company has also been linked with bids for Moss Bros and US retailer Saks.

"These changes place us exclusively in the retail space, where we have unrivalled experience," said Baugur Group chief executive Gunnar Sigurdsson.

"It builds our existing war chest, which will allow us to take advantage of investment opportunities which will arise in the current market conditions."

Talks are continuing on a possible Baugur takeover of UK apparel retailer Moss Bros, following the group's 42p per share offer, which valued the company at GBP40m.

Due diligence is continuing, although reports continue to circulate that some Moss Bros board members may try to counter the bid, while rival retailer Laura Ashley has recently increased its stake in the company.