3 days Ago
TOKYO : The founding Ito family behind Japanese retailer Seven & i aims to raise more than 8 trillion yen ($52 billion) to take it private by the end of this financial year, Japanese public broadcaster NHK reported on Tuesday. The family has established a special purpose company that is in talks with Japan's three largest lenders and major U.S.
financial institutions to raise funds to take the 7-Eleven owner private. A spokesperson for Seven & i could not be reached for comment outside normal business hours in Tokyo. Seven & i has been under pressure to convince investors it can enhance value on its own and fend off a $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. ($1 = 153.5100 yen) (This story has been refiled to fix capitalization in paragraphs 1 and 3).
