Sources familiar with the matter have revealed that Seven & i Holdings Co. is considering a significant share buyback to enhance its valuation, leading to a notable surge in the company’s stock price.
The company’s board is set to deliberate on the buyback proposal in a meeting scheduled for later today, as disclosed by individuals who opted to remain anonymous due to the confidential nature of the information. The potential buyback is estimated to be approximately ¥2 trillion, .
Following the announcement of the buyback plan, Seven & i’s shares skyrocketed by up to 10% during Tokyo trading, marking the most significant intraday increase since November 20 and valuing the company at ¥5.7 trillion. Prior to today’s surge, the stock had experienced a 20% decline this year, prompting the company to consider operational reforms to enhance shareholder value.
In the wake of a failed attempt by the Ito family to privatize the company last month and amid a takeover bid by Alimentation Couche-Tard Inc., Seven & i’s valuation had slumped.
Earlier this week, there were reports that the owner of 7-Eleven is set to turn down a $47 billion bid from Canada’s Alimentation Couche-Tard.
However, the company’s spokesperson stated in a press release that it is dedicated to evaluating various avenues to enhance shareholder value, including the bid from Couche-Tard, emphasizing ongoing discussions with the latter’s special committee.
Last week, CP All Pcl., an operator of 7-Eleven in Thailand and Japan’s Itochu Corporation separately announced that they will not participate in the investment of Seven & i.
Meanwhile, Bain Capital is reportedly close to finalizing a deal to acquire Seven & i’s supermarket business, a move that could value York Holdings at over ¥700 billion, sources familiar with the matter disclosed.
