Seven & i Evaluates IPO of North American Units - Report

As an important move, it has been reported that Seven & i Holdings Co. is considering an initial public offering (IPO) for its market and gas station business in North America. This strategy is part of a proposed ¥9 trillion ($60 billion) management buyout and aims to address financing concerns. The founding Ito family is attempting to finalize this offer to present an alternative to Alimentation Couche-Tard Inc.'s ¥7.1 trillion bid.

The proposed IPO is expected to generate over ¥1 trillion in cash, contributing to the repayment of ¥6 trillion in loans obtained from major Japanese banks. Financial institutions, including Sumitomo Mitsui Financial Group Inc., Mitsubishi UFJ Financial Group Inc., and Mizuho Financial Group Inc., are anticipated to provide the necessary credit for the acquisition.

The capital raised from the IPO will offer assurances to these lenders regarding the swift repayment of debts. The Ito family aims to persuade the Seven & i board to support their own buyout plans instead of Couche-Tard's proposed plan by collaborating with Itochu Corp. to evaluate the public listing of the operations.

The report also noted that Seven & i plans to retain an equity stake in its North American operations post-IPO, thereby ensuring continued involvement in this segment of its operations.