7-Eleven's owner mulls over going private to head off foreign bid

The Japanese owner of 7-Eleven is mulling over going private by buying back its own shares in a bid to avoid a takeover attempt by Canadian rival Alimentation Couche-Tard, people with knowledge of the matter said.

Seven & i Holdings is considering a management buyout with funding from banks, Itochu and the founding Ito family in a transaction that could be worth 9 trillion yen (S$77.8 billion), the people said.

The deal could be presented as an option for shareholders in the event that Couche-Tard becomes more aggressive with its pursuit of Seven & i and makes a tender offer, the people said.

The operator of 7-Eleven stores has not said anything publicly since Couche-Tard increased its proposed price for Seven & i to US$18.19 a share in October to value the Japanese retailer at 7.2 trillion yen.

Seven & i had rebuffed an earlier, lower offer by the Canadian operator of Circle K stores and embarked on a restructuring aimed at unlocking value.