Seven & I Considering Supermarket Stake Sale Ahead of IPO, Sources Report

By Ritsuko Shimizu

TOKYO (Reuters) – Japan’s Seven & i Holdings is exploring the possibility of selling a stake in its supermarket division as part of preparations for a future listing of the business. This move comes after the owner of 7-Eleven turned down a takeover offer from Alimentation Couche-Tard, aiming to expedite its restructuring efforts.

The specifics regarding the timing and the extent of the potential sale remain unclear. Seven & i is reportedly considering offering shares to investors, including investment funds. Sources familiar with the situation, who wished to stay anonymous due to the confidential nature of the information, indicated that these discussions are ongoing.

The supermarket division includes the well-known Ito-Yokado grocery store chain. Recently, Seven & i rejected a buyout proposal from Canada’s Alimentation Couche-Tard, citing that the offered price was inadequate. In April, the company mentioned plans to potentially list the supermarket business by the 2027 financial year.

By divesting a portion of its stake in the supermarket division, Seven & i could attract a partner that might facilitate the necessary restructuring of the unit. This strategy is expected to allow the company to better concentrate on its main convenience store operations.

A spokesperson for Seven & i stated that these discussions have not been publicly disclosed and emphasized that no decisions have been finalized at this stage. There are expectations that the company may provide further details about its plans during its earnings announcement on October 10.

In a related development, reports indicate that Seven & i has been in talks with private equity firms and other potential buyers regarding the sale of Ito-Yokado and its supermarkets.

Market assessments suggest that the value of a sale could reach approximately 320 billion yen (around $2.19 billion). This follows news that Seven & i is also contemplating a sale of part of its Seven Bank unit.

Last month, the parent company of the 7-Eleven chain notably rejected a $38.5 billion takeover bid from Alimentation Couche-Tard, which would have marked the largest foreign buyout of a Japanese corporation.

In recent years, Seven & i has faced pressure from investors, such as ValueAct Capital, to enhance its asset management strategies and has already divested interests in several underperforming assets.

In April, Seven & i reiterated its intention to explore the possibility of listing its supermarket business to maximize corporate value.