Nov 13, V7N-Japan's Seven & i Holdings (3382.T), the owner of 7-Eleven, is reportedly considering a management buyout (MBO) that could take the company private. According to Bloomberg News, the deal could be valued at up to $58 billion, while the Nikkei estimated it at more than 6 trillion yen ($39 billion). Seven & i has not confirmed the reports, with a spokesperson stating the information did not come from the company.

The potential MBO comes amid increased pressure on Seven & i to enhance corporate value and deliver higher returns to shareholders. This follows a $47 billion takeover bid by Canada’s Alimentation Couche-Tard, which seeks to create a global convenience store giant. Going private would enable Seven & i to maintain its current management, avoid shareholder demands to sell assets, and block Couche-Tard’s acquisition attempt.

The Nikkei reported that Seven & i has started discussions with banks for funding. Japanese banks Sumitomo Mitsui, Mitsubishi UFJ, and Mizuho are reportedly in talks to provide a combined 6 trillion yen in loans. The company's founding Ito family and Itochu may also participate in the buyout, according to Bloomberg News.

Representatives from Mitsubishi UFJ and Sumitomo Mitsui declined to comment, and Couche-Tard did not immediately respond. Following the news, trading of Seven & i shares was suspended on the Tokyo Stock Exchange.

(Exchange rate: $1 = 154.73 yen)

END/BUS/RH/