AsianFin -- Japan’s Seven & i Holdings announced Thursday that the founding Ito family was unable to secure the financing needed for a $58 billion management buyout. The retailer will now consider a competing offer from Canada’s Alimentation Couche-Tard.
"There is no actionable proposal from Mr. Junro Ito and Ito-Kogyo for Seven & i to consider at this time," the company said in a statement. It added that it remains committed to exploring all options to maximize shareholder value, including Couche-Tard’s proposal.
Japanese trading giant Itochu also confirmed it would no longer consider participating in the Ito family’s buyout plan.
With the management buyout failing, the chances of Couche-Tard acquiring Seven & i have increased. Seven & i, best known for owning 7-Eleven, is one of Japan’s most iconic retailers.
Following the news, Seven & i’s shares dropped 12%, while Itochu’s stock rose more than 6% in early Tokyo trading on Thursday.
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