THE founding Ito family behind Japanese retailer Seven & i aims to raise more than 8 trillion yen (S$70 billion) to take it private by the end of this financial year, Japanese public broadcaster NHK reported on Tuesday (Nov 19).
The family has established a special purpose company that is in talks with Japan’s three largest lenders and major US financial institutions to raise funds to take the 7-Eleven owner private.
Seven & i has been under pressure to convince investors it can enhance value on its own and fend off a US$47-billion takeover bid from Canada’s Alimentation Couche-Tard.
It said last week it had received a buyout proposal from the founding Ito family.
Going private would allow it to continue under current management and remove pressure from shareholders to sell off more of its assets – as well as eliminate the threat from a bidder that it may see as hostile. A management buyout offer could also be a tactic to force Couche-Tard to bid more.
The company’s shares ended little changed on Tuesday, but have climbed by more than 50 per cent to record highs since August as takeover speculation swirled. REUTERS
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