Itochu mulls 1 tril. yen investment in Seven & i buyout plan

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.

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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.

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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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