Seven & i Holdings Co. Contemplates IPO

In a significant move, Seven & i Holdings Co. is contemplating an initial public offering (IPO) for its North American convenience stores and gasoline stations business, as reported by Bloomberg News.

This strategy is part of a proposed ¥9 trillion ($60 billion) management buyout aimed at addressing financing concerns. The Ito family, founders of the company, is working on finalizing this proposal to present an alternative to the ¥7.1 trillion offer from Alimentation Couche-Tard Inc.

The proposed IPO is expected to generate over ¥1 trillion in cash, assisting in the repayment of ¥6 trillion in loans from major Japanese banks. Sumitomo Mitsui Financial Group (NYSE:SMFG) Inc., Mitsubishi UFJ (NYSE:MUFG) Financial Group Inc., and Mizuho (NYSE:MFG) Financial Group Inc., along with other financial institutions, are anticipated to provide the necessary loans for the buyout.

The capital raised from the IPO would reassure these lenders regarding the swift repayment of the borrowed funds.

By considering the listing of its operations, the Ito family, in collaboration with Itochu Corp. (TYO:8001), aims to persuade the board of Seven & i to endorse their buyout plan over the one proposed by Couche-Tard.

The report also added that Seven & i plans to maintain a stake in the North American business post-IPO, ensuring continued involvement in this segment of their operations.

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