Seven & i Holdings Management Buyout Plan Unveils Funding Consortium
To fend off a potential takeover by Alimentation Couche-Tard Inc., Seven & i Holdings Co. has enlisted Citigroup Inc. and Bank of America Corp. to assist with financing a management buyout.
Debt Refinancing and Equity Participation
The two US banks will aid in refinancing the debt of Seven & i's US unit. Thai conglomerate CP All Plc is also considering an equity stake of approximately ¥500 billion in the buyout.
Financing Details
The management buyout plan involves approximately ¥4 trillion in equity stakes. The Ito family will contribute ¥500 billion, Itochu Corp. over ¥1 trillion, and the remaining funds will come from bank financing. Apollo Global Management Inc. is considering a commitment of up to ¥1.5 trillion, and KKR & Co. is also exploring a stake. Japanese financial institutions Sumitomo Mitsui Financial Group Inc., Mitsubishi UFJ Financial Group Inc., and Mizuho Financial Group Inc. are slated to participate in financing.
Protecting a National Icon
A successful buyout would shield Seven & i from foreign ownership and allow the company to restructure privately. The move signifies a collaborative effort by corporate Japan to retain control of a storied domestic brand.