Market Chatter: 7-Eleven Owner Seeking to Sell Off Part of Stake in Banking Unit
07:59 AM EDT, 10/03/2024 (MT Newswires) -- Seven & i Holdings Co., the convenience-store operator facing a takeover approach from Canada's Alimentation Couche-Tard Inc. (ATD.TPO), is exploring the sale of part of its stake in Seven Bank Ltd., people with knowledge of the matter said, Bloomberg is reporting Thursday.
The move is intended to show the retailer is willing to focus more on its core 7-Eleven business, said the people, asking not to be identified because the plans aren't yet public. The bank, which has become an important part of the retailer's business in Japan over the past two decades, would no longer be accounted for as a subsidiary, the people added. Deliberations are ongoing and a final decision hasn't been made, one of the people said.
Bloomber noted Seven & i is facing pressure to show that it can command a higher valuation for its business, whether in negotiations or through its own efforts. The 7-Eleven owner asserted last month that Couche-Tard's initially indicated offer of $14.86 a share didn't fully reflect the company's worth.
A representative for Seven Bank declined to comment. A spokesperson for Seven & i wasn't immediately able to comment.
(Market Chatter news is derived from conversations with market professionals globally, and/or from other media sources. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)