The due diligence for Sedmoi Kontinent starts today to be completed in two or three months, while the deal is expected to be finalized by this year-end. As a result of it, two Russia’s billionaires, Vladimir Gruzdev and Alexander Zanadvorov, will get roughly $700 million and retain between 15% and 20% in the stores of the chain. According to the sources close to negotiations, TPG Capital that is represented by UST Capital in the deal will acquire 60% in 7K-Investholding. UST Managing Director Igor Soglaev confirmed that his company stands for TPG and that the parties inked the preliminary agreement.
The stake in 7K-Investholding will be sold before this year-end, and due diligence for Sedmoi starts already today to be completed in two or three months, the source specified. Vladimir Gruzdev said he doesn’t comment on “incomplete processes,” Alexander Zanadvorov couldn’t be reached to comment and TPG refused to give any comments.
As of close of 2006, Sedmoi Kontinent controlled 123 supermarkets of the same name and Nash hypermarket. 2006 turnover reached $1.1 billion. The real estate of roughly 65 stores of Sedmoi Kontinent in Moscow is managed by Mcapital; their area totals 175,000 square meters. (kommersant.com)
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