Japan Retailer Seven & i Mulling Management Buyout

Tokyo, Nov. 13 (Jiji Press)--Japanese retail giant Seven & i Holdings Co. said Wednesday that it is examining a management buyout based on a proposal by a founding family member.

The management buyout is seen reaching some 9 trillion yen in value including financing from banks. The deal was proposed by Vice President Junro Ito, a member of a Seven & i founding family, and the family's asset management company, Ito-Kogyo Co., which holds 8 pct of Seven & i.

Seven & i is considering going private through the management buyout to counter an acquisition proposal by Canadian convenience store operator Alimentation Couche-Tard Inc.

According to one source, Seven & i is weighing a plan to raise funds for the management buyout from Japan's three megabank groups, trading house Itochu Corp. and investment funds.

Seven & i is examining the management buyout proposal at a special panel composed only of outside directors. Ito is excluded from all related internal deliberations including on the acquisition proposal by Alimentation Couche-Tard.

[Copyright The Jiji Press, Ltd.]