Consortium Taps Citigroup, BofA for Funding in Seven & i Buyout Bid
Tokyo, Japan - The consortium planning to acquire Seven & i Holdings Co. has secured financing from Citigroup Inc. and Bank of America Corp., adding to the growing group involved in the record-setting management buyout bid.
Citigroup and BofA will refinance debt for Seven & i's US subsidiary, which held ¥2.7 trillion ($17.8 billion) in debt as of November 2024. The overseas convenience store operations account for 56% of this debt.
Thai conglomerate CP All Plc, the franchise holder for 7-Eleven in Thailand, is also considering a ¥500 billion equity stake in the buyout. This would join the plan initiated by Seven & i's founding Ito family and Familymart operator Itochu Corp. last year.
The participation of various entities, including banks, private equity firms, and corporations, underscores the collective effort by Japanese companies to prevent the acquisition of the iconic Seven & i by foreign interests.
The management buyout proposal involves approximately ¥4 trillion in equity stakes, with the Ito family contributing ¥500 billion and Itochu over ¥1 trillion. The remaining funds would be secured through bank financing.
Other financial institutions expected to participate include Sumitomo Mitsui Financial Group Inc., Mitsubishi UFJ Financial Group Inc., and Mizuho Financial Group Inc.