Apollo Considers $9.5 Billion Stake in Seven & i Management Buyout
Apollo Global Management is eyeing a significant investment in Seven & i’s buyout plan led by the Ito family
Apollo, Seven & i, Ito Family, Japan, Buyout
Tokyo: So, here’s the scoop. Apollo Global Management is thinking about jumping into a big deal with Seven & i, the Japanese convenience store giant. They’re looking at putting in a whopping $9.5 billion to help the Ito family take the company private.
Apparently, Apollo is in talks to grab a stake in this whole plan. The Ito family is also in the mix, planning to pitch in around $500 billion, while Itochu Corp. is expected to contribute over ¥1 trillion. It’s a big team effort!
Now, the total equity stakes are shaping up to be around ¥4 trillion, with banks covering the rest. But here’s the twist: the original buyout valuation was set at ¥9 trillion, which is more than a previous bid from Couche-Tard. However, it might get adjusted since Seven & i’s market value is currently lower.
As of now, Seven & i’s market cap is about ¥6.3 trillion, especially after their stocks took a hit following some not-so-great earnings reports. And while Apollo isn’t spilling any beans, they’re definitely in the mix.
Details are still being hammered out, like how the investment will be structured and who gets what voting rights. The clock is ticking, though, as they’re racing to finalize everything before Couche-Tard makes another move.
In addition to this buyout plan, Seven & i is also shaking things up by separating its convenience store business from its weaker retail operations. They’re really trying to boost the value of their convenience stores.
This bid from the Ito family could end up being one of the biggest buyouts ever in Japan, showing a strong push to keep this iconic company from going into foreign hands.
Recently, Seven & i’s CFO mentioned that the board is still weighing the takeover proposals from both Couche-Tard and the Ito family. They’re looking at all options but need more info to make a solid decision.
So, it looks like the management will have to figure out the best path forward, especially with a shareholders’ meeting coming up in May. It’s definitely a busy time for them!
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