Investing.com -- Shares of Seven & i Holdings surged 11.8% after the company confirmed a management buyout (MBO) proposal led by Vice President Junro Ito and the founding Ito family's asset management firm, Ito-Kogyo.
The offer, first reported by Bloomberg, seeks to acquire Seven & i and is likely an attempt to counter Couche-Tard's (ATD) previous bid, according to analysts at Jefferies.
Jefferies noted that the MBO, which involves a consortium including the Ito family, Itochu Corp. (TYO:8001), and three major banks, could potentially fend off Couche-Tard's acquisition ambitions.
They explained that the proposed acquisition, worth around ¥9 trillion (about $58 billion), surpasses Couche-Tard's October 9 offer of $47 billion by approximately 23%.
Jefferies previously identified an MBO as a potential scenario, suggesting that this move aligns with Seven & i's ongoing strategy to resist Couche-Tard's advances.
As Jefferies highlights, "the news reinforces 7&i's efforts to fend off an acquisition by ATD after its rejection of the first offer." The consortium backing the MBO reportedly intends to acquire Seven & i's CVS, superstore, and other businesses, with plans to divest the superstore segment in the future.
The MBO offer is still non-binding and confidential, and no decision has been made by Seven & i on whether it will accept any of the offers.
Jefferies notes that Stephen Dacus, head of the company's Special Committee, emphasized that the committee is conducting an objective review of all alternatives.
Jefferies said details on Couche-Tard's revised offer remain undisclosed, leaving the next steps open-ended as Seven & i assesses its options.