As Seven & i Holdings (7&i) grapples with a buyout proposal from Canadian powerhouse Alimentation Couche-Tard, the company has announced some major changes to its business, which it describes as “a series of transformational leadership, capital and business initiatives to enhance focus on its convenience store business and unlock and distribute significant value to shareholders.”
“The group is executing key actions that are concrete, actionable and value accretive. We have been on a journey to explore opportunities that create the most value for our shareholders and enhance our customers’ experiences around the world,” said Ryuichi Isaka, president. “This is the right time to move these initiatives forward, and the management team is excited to execute our transformation strategy while remaining focused on identifying avenues to continue driving shareholder value.”
Firstly, 7&i officially named Stephen Hayes Dacus as its president, representative director and CEO, effective after the company’s annual general meeting in May. Dacus currently sits as the chairman of the board as the lead independent outside director.
Dacus has been a member of the board since May 2022. The company noted that he has been instrumental in overseeing its value creation strategy.
North American IPO
7&i also revealed its plans to pursue an IPO for SEI, or its 7-Eleven c-store business in North America, by the second half of 2026.
“The board is confident that an IPO at this time is the best path to unlock significant value for group shareholders and position SEI for accelerated growth,” a recent statement from 7&i read.
This move will create two independent public companies, while maintaining synergies with 7&i, as it retains the majority of shares for SEI.
“An independent SEI will have increased financial flexibility and greater decision-making autonomy to capitalize on its market leadership as the largest convenience store chain in the attractive North American market with strong brand recognition and best-in-class digital offering in the industry,” the statement continued.
Superstore Sale
Additionally, 7&i announced that it has signed a definitive agreement with Bain Capital for the sale of its grocery retail, specialties and other retail business, labeled the Superstore Business Group.
The $5.4 billion sale is expected to close in September, and the company will roll over 35% of equity holdings.
Seven Bank Exit
The company also revealed that it will exit its ownership of its financial services company Seven Bank by selling down its ownership stake to below 40%, and will deconsolidate from the group’s balance sheet.
“Throughout this process, the company will continue to assess additional alternatives for its shares in Seven Bank that may unlock value for shareholders at a more accelerated pace,” the statement continued.
7&i has affirmed, however, that the company will continue to accelerate growth in its convenience store business, and plans to execute “disciplined M&A activity.”
Acquisition Talks, Divestiture Package
7&i provided updates on its current standing with Alimentation Couche-Tard and the ongoing acquisition talks between the companies.
7&i noted that a special committee was formed in August 2024 to consider and evaluate Couche-Tard’s $47 billion buyout offer. The committee was later mandated to consider a separate buyout from a member of the founding family, Junro Ito. On Feb. 28, Junro Ito withdrew his proposal after failing to secure funding.
“The special committee has been committed to exploring all value creation opportunities, including active and constructive engagement with (Couche-Tard) and will continue to do so,” the statement read. “The initiatives management has announced today are crucial steps in simplifying our group structure and unlocking shareholder value. As there is no assurance that a third-party transaction will ever become actionable or be in the best interest of the group’s shareholders and other stakeholders, the special committee fully endorses these management initiatives to unlock shareholder value at this time.”
Additionally, the company announced that it has been working with Couche-Tard to put together a potential divestiture package, which would be “unprecedented in scope and size,” that could be divested to a “viable, credible and independent buyer in a manner that could be stood up to operate effectively on a go-forward basis and assure competition between (Couche-Tard) and the buyer of the divested stores, even after a transaction.”
