Japan’s Seven & i Holdings is considering a management buyout to take the company private in a deal potentially worth up to $58 billion, according to Bloomberg News on Wednesday. Meanwhile, the Nikkei newspaper reported that the 7-Eleven owner is exploring an MBO valued at over 6 trillion yen (approximately $39 billion).
A spokesperson from Seven & i stated that the information was not officially released by the company.
The company has faced mounting pressure to enhance shareholder value, particularly after Canada’s Alimentation Couche-Tard proposed a takeover in August to create a global convenience store giant. Sources indicate that Couche-Tard has raised its offer to $47 billion.
Seven & i has reportedly begun discussions with banks to secure funding for the buyout, according to the Nikkei. Bloomberg reported that Japanese banks Sumitomo Mitsui (NYSE:SMFG), Mitsubishi UFJ (NYSE:MUFG), and Mizuho (NYSE:MFG) are in talks to provide a combined 6 trillion yen in financing for the management buyout.
Bloomberg also noted that Seven & i’s founding Ito family and trading house Itochu may participate in the acquisition.
Representatives for Mitsubishi UFJ and SMFG declined to comment.
By going private, Seven & i could maintain its current management and reduce shareholder pressure to divest assets, as well as fend off the potential takeover from the Canadian Circle K owner.
