Russian private equity firm Baring Vostok Capital Partners (BVCP) is a potential buyer of Seventh Continent, Moscow’s largest grocery chain.
Alexander Zanadvorov, the owner of the grocery chain is considering selling the company after failing to meet a margin call from Deutsche Bank, Kommersant business daily reported. He is also reported to be considering refinancing the debt, reported to be US$576m, through state bank VEB.
BVCP funds are invested amongst oil and gas, consumer products, telecommunications, and media sectors. The Russian private equity company created a record launched a US$1bn fund in March 2007.
In October, Seventh Continent posted 19% year-on-year fall in first half net profit to US$42.3m and said it has secured US$160.4m in loans.