Seven & i Holdings Co., the Japanese owner of 7-Eleven stores, confirmed it received a management buyout proposal from its founding family, marking a potential defense against persistent takeover attempts by Alimentation Couche-Tard Inc., Nikkei reported.
The Tokyo-based retail giant would need to raise more than 6 trillion yen ($38 billion) to execute what could become Japan’s largest-ever management buyout. The founding family’s asset management firm, Ito Kogyo, which holds about 8% of Seven & i, is leading the effort through a special-purpose vehicle.
The news sparked a trading halt in Tokyo, with shares surging 18% to 2,599 yen after resuming. The stock hit 2,727.5 yen in off-exchange trading during the suspension.
The potential buyout follows Seven & i’s rejection of Couche-Tard’s initial 6 trillion yen bid in July, which the board said undervalued the business. The Canadian convenience store operator returned in September with an improved 7 trillion yen offer that remains under review.
Both Seven & i and the special-purpose company have enlisted financial and legal advisors, though the deal faces significant hurdles. Success depends on securing substantial funding from financial institutions and gaining support from other investors, with no guarantee the transaction will materialize.
