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. Last Updated: 07/27/2016

Czech Firm Buys Controlling Stake in Eldorado

PPF Group, the Czech Republic's largest closely held financial company, agreed to acquire a majority stake in Eldorado Group for $300 million, gaining control of Russia's largest electronics retailer, the Czech company said in an e-mailed statement Monday.

PPF will buy 50 percent plus one share in Fasipero, a joint venture with Eldorado's founder and president Igor Yakovlev, the statement said. Fasipero will control all the retailer's assets and property, excluding Eldorado's assets and obligations in Ukraine.

"We view the transaction as a promising investment in the market, which is strategic for the group," Jiri Smejc, a shareholder in the Czech company, said in the statement. "Our joint efforts will be directed at adjusting the business to market tendencies to strengthen the company's leading positions in the electronics and home appliances market in Russia."

PPF will convert part of a loan that it made to Eldorado into funds that will pay for the stake, the statement shows. The Russian company will still owe PPF $200 million.

Eldorado generated revenue of $5 billion last year, down from $6 billion in 2007, according to spokesman Ilya Novokhatsky.