The founding Ito family of Japanese retailer Seven & is reportedly seeking to raise over 8 trillion yen ($52 billion) to take the company private by the end of this fiscal year, according to NHK.
To achieve this, the family has created a special purpose company and is negotiating with Japan’s three largest banks and major U.S. financial institutions to secure funding for the buyout of the 7-Eleven owner.
Seven & i has faced pressure to demonstrate its ability to enhance shareholder value independently and counter a $47 billion takeover bid from Canada’s Alimentation Couche-Tard. Last week, the company confirmed receiving a buyout proposal from the Ito family.
Taking the company private would allow it to maintain current management, avoid shareholder demands to divest assets, and neutralize a potentially hostile bid. The management buyout proposal might also serve as leverage to encourage Couche-Tard to increase its bid.
On Tuesday, the company’s shares closed with little change but have surged over 50% to record highs since August amid ongoing takeover speculation.
