Seven & i's North American business IPO to fund quicker growth, says CEO

CNA

4 days ago

TOKYO :Seven & i Holdings' planned listing of its North American operations would enable the Japanese convenience store operator to take on additional debt for more aggressive growth than currently planned, its chief executive said on Wednesday.
The listing, billed for the second half of 2026, would allow for faster store rollouts in the U.S. and additional bolt-on M&As, CEO Stephen Dacus said at a strategy briefing for analysts and media in Tokyo.
The fate of the beleaguered operator of the 7-Eleven chain rests on its ability to demonstrate it can grow independently, having successfully fended off a takeover bid from Canadian rival Alimentation Couche-Tard.
Couche-Tard withdrew its $46 billion offer last month citing a lack of engagement from Seven & i, which precipitated a 9 per cent fall in the latter's share price that reflected investor scepticism about Seven & i's standalone growth plans.
In Japan, Seven & i faces stiff competition from faster-growing rivals Family Mart and Lawson, while in the U.S., analysts and investors say lacklustre profit margins belie its potential as the largest convenience store chain in the country.
For years Seven & i has been under pressure from shareholders, including a series of activist investors, to boost returns by selling off assets and focusing on its core convenience store business.
In March, Seven unveiled a major restructuring in which it sold off its superstore unit, announced a 2 trillion yen ($13.55 billion) share buyback through 2030 and committed to a public listing of its North American arm in the second half of 2026.
($1 = 147.5600 yen)