Trading house Itochu Corp. is considering investing around 1 trillion yen ($6.3 billion) in Seven & i Holdings Co. as part of a management buyout plan by the retailer’s founding family, sources familiar with the matter said Friday.
Itochu, which owns convenience store chain FamilyMart Co., has been approached by the family but it aims to mitigate antitrust concerns by limiting its stake in Seven & i, the operator of 7-Eleven convenience stores, to around 10 percent, the sources added.
The family is considering the management buyout, estimated at around 9 trillion yen, to fend off a takeover offer by Canada’s Alimentation Couche-Tard Inc.
It has been seeking loans and investments from banks and investment funds to help finance its buyout deal.
By investing in Seven & i, Itochu expects to strengthen its convenience store business by collaborating in logistics and product development, the sources said.
Seven & i has said that its special committee of outside directors is reviewing the two buyout proposals, with a response expected by May.
The retailer could also reject the offers and pursue a “standalone” strategy, Chief Financial Officer Yoshimichi Maruyama said at a press conference on Thursday.
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