The French company that owns the Gucci brand, PPR SA, is in the process of spinning off its Fnac book and electronics stores. The company is seeking a valuation of Eur400 million or US$519 million as an offer for the said business, according to anonymous sources familiar with the process.

Managing the said sale are Societe Generale SA, Natixis SA and Credit Agricole SA. Lazard Ltd is providing advice to PPR while Rothschild is advising Fnac. 

Under the proposal, current PPR shareholders would be given Fnac shares when the spin off is finalized, scheduled for June of 2013. The price of the shares would be set during the annual shareholders meeting to be held on June 18.

After it spins off Fnac, the company is also planning to sell off online retailer La Redoute. This would complete the revamp of PPR into a luxury and sporting goods company. The French owner of Puma would also be rebranding itself to Kering within the month to mark the completion of the transformation.

Other PPR brands include handbag maker Bottega Veneta as well as extreme sports clothier Volcom. The company is seeking to increase its share values and is trading at a discount to its luxury competitors because of its focus on retail business.