7-Eleven parent company Zihe Holdings is considering a private valuation of nearly 78 billion yuan

Seven & i Holdings, the parent company of 7-Eleven convenience stores, is considering taking the company private through a management buyout (MBO) in a deal expected to be worth about Y9tn. If the deal goes through, it would be the biggest takeover in Japanese history.

Itochu, the ITO family and existing investors are expected to contribute 3 trillion yen in cash and equity, Bloomberg said, citing sources familiar with the matter. Japan's three largest banks, Sumitomo Mitsui (SMBC), Mitsubishi UFJ (MUFG) and Mizuho Financial Group (Mizuho), will provide 6 trillion yen in financing support.

It is reported that the move is in response to the Canadian convenience store giant Couche-Tard's previous merger attempt. Zihe confirmed the ITO family's nonbinding proposal, but did not provide details such as a price.

Zihe Holdings has not responded publicly. Couche-Tard had previously raised its offer to $18.19 per share, valuing it at about 7.2 trillion yen. Zihe had rejected lower offers and launched a restructuring plan to unlock value. Stephen Dacus, chairman of the special committee, said the company 'objectively reviews the proposal by the ITO family and Couche-Tard and will seek to maximize shareholder value.'

Shares in Zihe Yi surged 17 per cent on the news, their biggest one-day gain since August 2021, while Itochu fell 3.4 per cent.