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 company, which operates 7-Eleven convenience stores and Ito-Yokado supermarkets in Japan, is reportedly seeking funding from megabanks and other financial institutions to take its shares private. This move comes in response to Couche-Tard's revised offer of approximately 7 trillion yen ($57 billion) to acquire Seven & i.
Seven & i previously rejected Couche-Tard's initial offer of 6 trillion yen, claiming it significantly undervalued the company. The new offer represents a 20% increase, but Seven & i's market capitalization currently stands at around 5.8 trillion yen, suggesting the total cost of acquiring all shares could exceed 6 trillion yen.
The potential MBO would require significant financial backing, and its success remains uncertain. However, it demonstrates Seven & i's determination to remain independent and maintain control over its operations.