Seven & i Holdings, a Japanese convenience store operator, has abandoned its management buyout plan due to financing issues. The company’s founding family had planned to acquire the business from Canadian convenience store operator Alimentation Couche-Tard. However, they were unable to secure the necessary funding.
The proposal was valued at over $53 billion and would have seen Alimentation Couche-Tard acquire a significant stake in Seven & i. Despite initial offers of $14.86 per share being rejected, the company did increase its offer to $18.19 per share.
Itochu, a Japanese trading house, had initially been involved in the deal but backed out due to limited synergies between their businesses. The founding family had also teamed up with three Japanese megabanks and major American financial institutions to secure funding for the buyout.
The news has resulted in a significant decline in Seven & i’s shares, plummeting as much as 12.44% on Thursday. The company’s market capitalization has decreased by around $5 billion, valuing the business at approximately $47 billion.
Source: https://www.cnbc.com/2025/02/27/seven-i-shares-plunge-over-12percent-as-management-buyout-falls-through-.html