Japan’s 7-Eleven reportedly considering management buyout of up to $58B

(FILES) A woman walks out of a 7-Eleven convenience store along a street in central Tokyo on August 22, 2024. – The Japanese owner of 7-Eleven is considering going private by buying back its own shares in a bid to avoid a takeover attempt by Canadian rival Alimentation Couche-Tard, according to a report on November 13. (Photo by Richard A. Brooks / AFP)

TOKYO, Japan — Japan’s Seven & i Holdings 3382.T is considering launching a management buyout that would see the retailer go private in a deal that could be worth up to $58 billion, Bloomberg News reported on Wednesday.

The Nikkei newspaper also reported that the owner of the 7-Eleven convenience store chain was looking at an MBO but put the value of a potential deal at more than 6 trillion yen ($39 billion).

A Seven & i spokesperson said the information was not something released by the company.

READ: Japanese 7-Eleven owner rejects takeover offer from Canadian rival

Seven & i has come under increased pressure to boost corporate value and deliver more for shareholders after Canada’s Alimentation Couche-Tard ATD.TO emerged in August with a takeover bid, aiming to create a global convenience-store powerhouse.

Couche-Tard has sweetened its offer to $47 billion, sources have previously said.

Going private would allow Seven & i to continue under its current management and remove the pressure from shareholders to sell off more of its assets – as well as eliminate the threat of a takeover by the Canadian owner of Circle K stores.

Seven & i has already started sounding about banks for funding the buyout, the Nikkei said. Japanese banks Sumitomo Mitsui 8316.T, Mitsubishi UFJ 8306.T and Mizuho were in talks to lend a combined 6 trillion yen for the management buyout, Bloomberg said.

Seven & i’s founding Ito family and trading house Itochu 8001.T could also take part in the acquisition, Bloomberg News said.

Representatives for Mitsubishi UFJ and SMFG declined to comment.

No one was immediately available for comment at Couche-Tard.

Trading in shares of Seven & i were suspended in Tokyo following the reports.