Private equity firm
KKR is also expected to be one of the lead underwriters on the deal along with Goldman Sachs and Citigroup, the sources told the paper.
Dollar General’s board is likely to meet soon to finalize the selection of underwriters, according to the paper.
KKR could not be immediately reached for comment by Reuters.
KKR valued its portfolio investment in Dollar General at $1.6 billion in March, according to documents that gave details of its biggest investments in various portfolio companies as of March 31.
KKR wrote up the value of its investment in Dollar General in March, compared with December and there has been speculation about whether it will seek an initial public offering for the discount store.
A recession has tightened household budgets, prompting shoppers to flock to discount chains such as Dollar General and Wal-Mart Stores.
(Reporting by Ajay Kamalakaran in Bangalore; Editing by Dhara Ranasinghe)