Carrefour made the Russian retailer a nonbinding offer in late February, the banking sources said.
The valuation includes 100 percent of Sedmoi Kontinent, 100 percent of the affiliated MCapital, which controls most of the company's real estate, and $450 million of debt, the sources said. The audit will continue for another two to three weeks, they said.
Carrefour was not immediately available for comment.
If the deal goes ahead, Carrefour would become the first foreign company to enter the Russian retail market since the credit crunch hit local firms. Russian retailers face a difficult year as the country battles against recession, but the downturn may also offer global majors an easier entry into the sector, which has more potential than many mature markets and where distressed assets prices are set to plunge.
Sedmoi Kontinent, which has 140 stores, saw its sales rise 23 percent to $1.4 billion last year. Deutsche Bank currently holds a controlling stake of 74.81 percent in Sedmoi Kontinent as collateral on a $560 million loan to majority owner Alexander Zanadvorov. Zanadvorov has been trying to refinance the credit or attract an investor since a margin call on the loan late last year, the sources said.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.