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. Last Updated: 07/27/2016

TPG Signs Deal to Buy Sedmoi

U.S. buyout firm TPG signed a preliminary accord to buy more than half of supermarket chain Sedmoi Kontinent, Kommersant reported Tuesday.

The companies signed the accord Monday, said Igor Soglayev, managing director of UST Capital, which is advising TPG, the newspaper reported.

Sedmoi Kontinent's billionaire owners, Vladimir Gruzdev and Alexander Zanadvorov, will raise about $700 million from selling 60 percent of the retailer's holding company, 7K Invest-Holding, the newspaper said, citing unidentified people familiar with the agreement. Gruzdev and Zanadvorov will keep 15 percent to 20 percent of the company each, Kommersant said.

Sedmoi Kontinent spokesman Leonid Pirogov declined to comment on the report Tuesday.

Kommersant reported in July that TPG was looking to acquire a 37 percent stake and half the retailer's real estate assets for $1.2 billion.

Sedmoi Kontinent generated $958 million in sales for 2006 and had 118 supermarkets and six superstores at the end of March.

Vedomosti reported Monday that Gruzdev, a State Duma deputy, signed a $20 million contract to become the first Russian space tourist.

Bloomberg, MT