7-Eleven owner Seven & i Holdings has acknowledged the receipt of a buyout proposal from Ito-Kogyo, linked to the former’s vice president Junro Ito.
This non-binding offer is seen as a white-knight bid valued at approximately $58bn, set against another from Canada’s Alimentation Couche-Tard (ACT).
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The offer from Ito-Kogyo is currently under review by the Seven & i’s special committee, which was set up to assess Couche-Tard’s bid.
Seven & i’s board of directors chair Stephen Hayes Dacus said: “We are committed to an objective review of all alternatives before us as we consider proposals from Ito and Ito-Kogyo, from ACT, as well as the company’s stand-alone opportunities to unlock shareholder value.
“The special committee and the company board will continue to engage with all parties in a manner designed to maximise value and will continue to act in the best interests of the company’s shareholders and other stakeholders.”
As of now, no decision has been made regarding a transaction with any party, and there is no certainty that any agreement will be reached or finalised.
Seven & i will concentrate on executing its business plans and identifying opportunities to increase shareholder value in the short to medium term.
Meanwhile, Seven & i investor Artisan Partners has urged the special committee to implement a competitive bidding process to determine the most advantageous takeover offer, Reuters reported.
Artisan portfolio manager Ben Herrick stated that while supporting both current offers, a structured auction could invite further third-party interest.
Herrick was quoted as saying: “Furthermore, we strongly recommend that the board grant both parties equal access to conduct due diligence. Lastly, it is imperative for the board and special committee to act with a sense of urgency without further delay.”
Last month, Seven & i reported a substantial increase in total sales, reaching Y9.28tn ($62.25bn) in H1 FY 2024.
