Seven & i founding family aims to raise $52 billion for buyout this year, NHK says
· CNA · JoinTOKYO : The founding Ito family behind Japanese retailer Seven & i aims to raise more than 8 trillion yen ($52 billion) to take it private by the end of this financial year, Japanese public broadcaster NHK reported on Tuesday.
The family has established a special purpose company that is in talks with Japan's three largest lenders and major U.S. financial institutions to raise funds to take the 7-Eleven owner private.
A spokesperson for Seven & i could not be reached for comment outside normal business hours in Tokyo.
Seven & i has been under pressure to convince investors it can enhance value on its own and fend off a $47-billion takeover bid from Canada's Alimentation Couche-Tard.
It said last week it had received a buyout proposal from the founding Ito family.
Going private would allow it to continue under current management and remove pressure from shareholders to sell off more of its assets - as well as eliminate the threat from a bidder that it may see as hostile. A management buyout offer could also be a tactic to force Couche-Tard to bid more.
The company's shares ended little changed on Tuesday, but have climbed by more than 50 per cent to record highs since August as takeover speculation swirled.
($1 = 153.5100 yen)
(This story has been refiled to fix capitalization in paragraphs 1 and 3)
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