Turkish retailer Kipa has said that it has agreed to sell a stake in the company to UK supermarket company Tesco.

Kipa told the Istanbul Stock Exchange that it had signed a deal with Tesco to allow the UK retailer to buy 84.33% of its group A shares, reported Reuters.

Final closure of the deal is expected later this year after a number of material conditions are fulfilled.

Tesco said that maximum payable for the entire equity of Kipa was US$118m. Kipa said the two companies had agreed on a valuation of $117.7m for the entire share capital of the company.