Best Buy To Sell Its Five Star Business To Jiayuan Group In China

(RTTNews) - Best Buy Co., Inc. (BBY) said it has entered into a definitive agreement for the sale of its Five Star business to the Jiayuan Group, a prominent -based real estate firm led by Chairman Yuxing Shen. This sale does not affect Best Buy's private label operations in China.

Best Buy entered the Chinese retail market by purchasing a majority interest in Jiangsu Five Star in 2006 and now operates 184 stores in China, all under the Five Star brand.

The transaction, which is subject to regulatory approval, is expected to close in the first quarter of fiscal 2016. The sale of the Five Star business is not expected to have a material impact on the results of operations, financial position or cash flow of Best Buy, according to the company.