The founding family of Japan’s Seven & i is seeking investment from Thailand's Charoen Pokphand (CP) Group for a management buyout of the Japanese retail giant, Reuters reported on Thursday, citing national broadcaster NHK.
The family is in discussions to take Seven & i private via a management buyout to ward off a $47 billion takeover bid from Canada’s Alimentation Couche-Tard.
CP is the latest potential partner approached by the family to support its takeover attempt, which values the sprawling convenience store conglomerate at an estimated $58 billion and would be the largest management buyout in Japanese history if it proceeds.
The proposed CP investment would be in the hundreds of billions of yen, with negotiations ongoing to determine the exact figure, NHK reported.
Seven & i declined to comment on the report. A representative for CP Group stated they do not comment on speculation.
The Thai retail and food group, which operates 12,000 7-Eleven stores in Thailand, joins Japanese trading house Itochu (8001.T) and US asset manager Apollo Global Management as potential partners the family has reportedly approached for funding.
The move would retain Seven & i's current management and alleviate pressure to sell off unprofitable assets, although some analysts suggest it may be intended to encourage a higher bid from Couche-Tard.
Seven & i has faced shareholder pressure in recent years to divest its diverse non-core assets, which include supermarkets, speciality shops, and restaurant franchises.
In October, it announced the creation of a holding company to house 31 of its subsidiaries, and sources have told Reuters that US private equity firms KKR (KKR.N) and Bain Capital each bid over $5 billion for the spin-off.