Shop Direct said to be headed for 3 billion pound sale

London - Shop Direct is said to be headed for a sale, as the Barclay brothers seek out 3 billion pounds plus for the retail company.

Following previous speculation that Sir David Rowat Barclay and Sir Frederick Hugh Barclay, otherwise known as the Barclay brothers, were preparing to offload a significant stake in Shop Direct, comes news the two have began hosting a series of takeover discussions with a number of buyout companies.

The brothers, who also own the Daily Telegraph, are set to hold meetings with a series of private equity firms, including Bain Capital, BC Partners, CVC Capital Partners, Advent International, Cinven and Permia according to Sky News. The discussions are said to represent the first step towards a bidding process which may led to the sale of Shop Direct, or its separate businesses, such as Littlewoods and Very, according to insiders.

The Barclay brothers are unlikely to sell the retail business for less than 3 billion pounds, as Shop Direct is valued at over 3 billion pounds. The online retailer was previously highlighted as one of most successful retailers during the vital Christmas period, reporting a 9 percent increase in sales in the seven weeks to December 23, 2016.

Investment bank UBS is said to be overseeing the sale process of Shop Direct and will be handling the upcoming talks between Shop Direct and the aforementioned private equity firms, although it is not certain if any will submit a formal bid for the online retail business at this point.