Seven & i Holdings Considers Management Buyout to Counter Takeover Bid
Seven & i Holdings Co., the Japanese retail giant, is exploring a management buyout (MBO) to counter a takeover bid from Canadian convenience store chain Alimentation Couche-Tard Inc., according to The Asahi Shimbun.
The move comes in response to Couche-Tard's revised offer of approximately 7 trillion yen ($45 billion) to acquire Seven & i. Seven & i had previously rejected an initial offer of 6 trillion yen, deeming it a significant undervaluation of the company.
To finance the potential MBO, Seven & i has reportedly approached major banks for funding. The total cost of acquiring all shares is estimated to exceed 6 trillion yen.
Seven & i operates a vast network of businesses in Japan, including 7-Eleven convenience stores and Ito-Yokado supermarkets. The company's market capitalization stood at approximately 5.8 trillion yen as of November 13th.
The potential MBO signifies Seven & i's determination to remain independent and maintain control over its future. The company believes that an MBO would allow it to pursue its own growth strategies and maximize shareholder value.
The outcome of the takeover battle remains uncertain. Couche-Tard has expressed its commitment to acquiring Seven & i, while the Japanese company appears resolute in its opposition. The coming weeks will likely see further developments in this ongoing saga.