Allegedly, the cost was between $400-800m. That’s surprisingly low when estimates once placed Eldorado’s 15 00+ chain at nearly $5 billion, but when you need cash… 

The deal helps Eldorado cover its debts (reported to be $1 billion): in February 2008, the Russian Federal Tax Service demanded RUB 15bn from Eldorado for alleged tax evasion (2004-2005). (See our article.)

Simultaneously Gasprombank and Sberbank insisted Eldorado repay its debts of $400m.  But there’s a twist: PPF claims this is in exchange for credit to Eldorado and the shares are a security on the loan. “Among others, the conditions of additional financing assume a possibility of acquisition by the PPF Group of a substantial, up to majority, stake in the retailer,” says a PPF statement.

Igor Nemchenko, chief executive of Eldorado, gave a one-sentence comment in the PPF statement: “Co-operation with PPF Group enables Eldorado to resume the standard operations and to retain jobs.”Czech billionaire Petr Kelner owns 94% of PPF Group. It has its headquarters in Amsterdam and manages assets in CEE/CIS worth more than 10 billion euros.

Go PPF Group