Jan 13 (Reuters) - Home Retail Group Plc HOME.L :
* Response to media speculation
* Confirms that it is in advanced discussions for potential sale of Homebase to Wesfarmers Limited for a cash consideration of 340 million stg
* Home Retail Group and Wesfarmers began discussions in September, due diligence commenced under a confidentiality agreement in October
* Wesfarmers provided group with a firm offer letter in November
* Under terms being discussed, Wesfarmers would acquire entire Homebase business, including all stores and dedicated distribution centres
* Product brands owned by group, like Habitat, Schrieber and Hygena will be excluded from sale, but licensed for use by Homebase for 1 year
* Discussions are ongoing and there can be no certainty that a transaction will be agreed
* Board believes sale proceeds of 340 mln stg provide good value for shareholders, recognising improvements made in Homebase business Source text for Eikon: ID:nRSM8105La Further company coverage: HOME.L