Seven & i Receives $58B Management Buyout Offer
TOKYO — A new player has emerged to potentially steer the future of Seven & I Holdings Ltd., parent company to 7-Eleven Inc.
The retailer confirmed on Nov. 13 that it received a buyout proposal from Junro Ito, son of company founder Masatoshi Ito and current vice president and representative director, and his private company Ito-Kogyo Co. Ltd., that could reach up to $58 billion.
Ito-Kogyo currently holds a stake of approximately 8% in Seven & i.
[Read more: 7-Eleven CEO Details Focus on Four Strategic Initiatives]
A Timeline of Seven & i/Couche-Tard Updates
The "white knight" bid would take Seven & i private and block the reported $47 billion proposal from Alimentation Couche-Tard Inc. The Laval, Quebec-based global retailer upped its offer last month from an initial proposal of $38.5 billion, or $14.86 per share, according to anonymous sources familiar with the matter.
Seven & i's board of directors unanimously rejected Couche-Tard's initial offer. However, the new bid from Ito and his company comes as advisers to Seven & i and Couche-Tard have recently begun "preliminary and limited" talks, reported the Financial Times.
In a released statement, Seven & i stated it had received a nonbinding, confidential offer from Ito and Ito-Kogyo, and that it would be reviewed by the same special committee set up to evaluate Couche-Tard's offer.
"We are committed to an objective review of all alternatives before us as we consider proposals from Mr. Ito and Ito Kogyo, from ACT, as well as the company’s standalone opportunities to unlock shareholder value,” said Stephen Dacus, chair of the special committee and the board of directors.
There is no guarantee that either acquisition proposal will be accepted, Seven & i noted.
"No determination has been made at this time to pursue a transaction with either Mr. Ito and Ito-Kogyo, ACT, or any other party, and there can be no assurance that any such transaction will be entered into or consummated," the company said.
Seven & i also noted that Ito has been excluded from all previous discussions related to any takeover proposal.
7-Eleven Inc. is No. 1 on the 2024 Convenience Store News Top 100 report. Alimentation Couche-Tard is the No. 2 retailer on the ranking.