KPL
(KPL/KYODO NEWS) Japanese retail giant Seven & i Holdings Co. said Wednesday it is considering a management buyout proposed by a member of the company's founding family, in a move that could thwart a takeover bid by a Canadian convenience store giant.
(KPL/KYODO NEWS) Japanese retail giant Seven & i Holdings Co. said Wednesday it is considering a management buyout proposed by a member of the company's founding family, in a move that could thwart a takeover bid by a Canadian convenience store giant.
The suggestion that will take the Japanese operator of the Seven-Eleven convenience store chain private is a fresh development in the takeover battle with Alimentation Couche-Tard Inc., whose latest offer has been estimated to be worth around 7 trillion yen ($45 billion).
The potential management buyout, proposed by Seven & i Vice President Junro Ito, is likely to exceed 6 trillion yen and could be the largest ever in Japan.
In a press release issued Wednesday, the company admitted receiving a nonbinding and confidential acquisition proposal from Ito and a company affiliated with him, Ito-Kogyo Co.
Stephen Dacus, a Seven & i director who heads a special committee reviewing the matter, said in the press release that the company is "committed to an objective review of all alternatives," including proposals from Ito and the Canadian operator of Circle K convenience stores.
The special committee and the company board will continue to engage with all parties "in a manner designed to maximize value and will continue to act in the best interests" of the company's shareholders and other stakeholders, Dacus said.
Seven & i is expected to secure funds from the Ito family and major banks to support the planned management buyout.
Speculation has also emerged that major Japanese trading house Itochu Corp., the parent firm of convenience store chain operator FamilyMart Co., may invest.
In September, Seven & i announced it had rejected Alimentation Couche-Tard's proposal to acquire all outstanding shares for $14.86 per share in cash, or roughly $39 billion, stating that the offer "grossly undervalued" the company.
The Japanese retailer then admitted in October that it had received a fresh buyout proposal from the Canadian company, which sources said was roughly 20 percent higher than its previous bid.
However, the Japanese firm has remained reluctant to accept the proposal.
The Canadian company, which operates brands including Couche-Tard and Circle K, has about 17,000 stores in over 30 countries and regions, including Canada and the United States.
Seven & i operates more than 80,000 Seven-Eleven convenience stores around the world.
Earlier this year, Taisho Pharmaceutical Holdings Co., which operates a major drug-making division, was the target of Japan's current largest management buyout, taking the company private for 710 billion yen.
KPL
