Home Retail Group will retain its larger Argos business. — Reuters file pic

LONDON, Jan 18 — Britain’s Home Retail Group confirmed the sale of its Homebase chain to Wesfarmers Ltd today, and said it would return £200 million (RM1.3 billion) of the proceeds to shareholders.

The company, which retains its larger Argos business, said last week it was in advanced talks to sell the chain to the Australian company for £340 million.

Wesfarmers said today it would spend another A$500 million (RM1.5 billion) refurbishing the 265 stores.

Home Retail rejected a separate approach from Sainsbury’s for the whole group in November. The supermarket chain, which was mainly interested in Argos, has until February 2 to make a formal bid. — Reuters