logo
Seven & i risks becoming buyout target again if turnaround fails

Seven & i risks becoming buyout target again if turnaround fails

Business Times18-07-2025
[TOKYO] Even after fending off Alimentation Couche-Tard's unsolicited 6.77 trillion yen (S$58.5 billion) takeover approach, Seven & i Holdings remains a buyout target in the eyes of some investors, who say new suitors may emerge unless the operator of 7-Eleven convenience stores turns around its business.
'If the stock price drops significantly, there might be a possibility of tender offers or hostile takeovers,' said Takamasa Ikeda, senior portfolio manager at GCI Asset Management, an investor in Japanese stocks.
While Seven & i shares are higher than they were before Couche-Tard's interest became public in August 2024, they fell after the proposal was withdrawn this week and are down by more than a fifth this year.
Newly appointed chief executive officer Stephen Dacus is under pressure to convince stakeholders that sweeping reforms will deliver, especially in the US and Japan, where inflation and weak demand are weighing on profits.
Seven & i is taking steps to bolster its shares with a five-year, two-trillion-yen share buyback.
So far, that has not done much, with the stock down about 7.8 per cent since the repurchase was announced on Mar 6. Some of the funding for that was due to come from an initial public offering of the US business, but Couche-Tard's exit has raised doubts over whether that plan will remain intact.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
Further investor-friendly efforts will be harder to enact, given that Seven & i has already taken drastic steps to overhaul the business, according to Taku Sugawara, an analyst at Iwai Cosmo Securities.
The operator of 7-Eleven stores is on track to sell its less-profitable retail operations in a deal that will close in September, part of the package of sweeping changes announced since Couche-Tard's approach.
'Obfuscation and delay'
The Canadian group's campaign, which if successful would have been the biggest foreign takeover of a Japanese company, ended in acrimony.
In a 1,500-word missive, Couche-Tard said Seven & i's founding Ito family had never been open to talks and blamed the board for a 'calculated campaign of obfuscation and delay'.
Seven & i responded by saying it was disappointed by Couche-Tard's decision to walk away, and disagreed with what it called 'numerous mischaracterisations' in the letter.
The remaining path for Seven & i is to pursue greater growth and profitability in the convenience stores business, which investors have been clamouring for. Two years ago, activist fund ValueAct Capital Management pushed for this strategy and unsuccessfully sought to replace Ryuichi Isaka, the prior CEO.
One issue is Seven & i's underlying performance. While operating profit for the March-to-May period rose 9.7 per cent year on year to 65.1 billion yen, it was the second-lowest quarterly result in the past decade. Domestic same-store sales remained almost flat, lagging behind competitors. The US operations squeezed out profits thanks to cost-cutting measures, but revenue remains weak.
'We are closely watching how far Mr Dacus can go in supporting and managing improvements in performance,' said Takahiro Kazahaya, a senior analyst at UBS Securities.
The CEO is due to give an update on Seven & i's turnaround strategy in August, with a focus on how he plans to improve the core convenience store business.
Giving in
Seven & i has a long history of enacting reforms under external pressure.
In 2016, concerns raised by activist fund Third Point over executive appointments resulted in the exit of former chairman Toshifumi Suzuki and Isaka's appointment. ValueAct's pressure campaign helped fuel Seven & i's decision to sell its Sogo & Seibu department stores to Fortress Investment Group in 2022 for 250 billion yen.
The latest reforms were accelerated by Couche-Tard's approach, according to Kazahaya.
While Couche-Tard may have stepped away from the deal, its decision to provide a detailed explanation in a long letter may tempt other potential bidders, activist investors, or even rivals, to join the fray.
One investor pointed out that the Canadian operator of Circle K stores could have issued a one-line statement, but chose instead to disclose details of its discussions with Seven & i, including the amount of the termination fee – US$1.2 billion – and alternate merger scenarios that were discussed.
Artisan Partners Asset Management was especially vocal during Couche-Tard's campaign, pressing the company to engage more deeply with the Canadian retailer.
In a letter sent to the company's directors in March, the US investment firm cited concerns around potential conflicts of interest and the board's 'failure to pursue the path that offers the best future for the company and maximises value'.
Another possibility is the resurrection of a management buyout by Seven & i's founding Ito family.
A nine-trillion-yen proposal to take the retailer private imploded in March after the buyout group, which included Itochu, failed to secure financing.
The lacklustre share price also makes Seven & i a prime candidate to be taken private by insiders. BLOOMBERG
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

BYD Sealion 6 rolls into Singapore, Lifestyle News
BYD Sealion 6 rolls into Singapore, Lifestyle News

AsiaOne

time8 hours ago

  • AsiaOne

BYD Sealion 6 rolls into Singapore, Lifestyle News

Think BYD only makes electric cars? You might want to reconsider that assumption. After first embarking on a 1,300km-long teaser road trip from Singapore to Kuantan and back down, the plug-in hybrid BYD Sealion 6 DM-i has officially been launched in Singapore. Its splashy local launch event saw more than 400 guests in attendance at Shangri-La Singapore on Wednesday afternoon (July 16), where they were reminded of BYD's growing market dominance in Singapore. But back to the main headline this time. While the Sealion 6 DM-i sports a similar visual outlook to the Sealion 7 with its bracket-like head lights, it swims into uncharted waters for BYD in Singapore by marking its first model ever to have a combustion engine under the hood. 'DM-i', which stands for 'Dual Mode - Intelligent', references the car's plug-in hybrid powertrain, which can switch seamlessly between a highly-efficient 1.5-litre naturally aspirated engine and a 145kW electric motor fed by an 18.3kWh Blade Battery (or rely on both together). The latter gives the car an electric-only range of up to 80km, and impressively, supports DC charging. Combined peak output from the DM-i Super Hybrid system stands at a healthy 160kW (215bhp) and 300Nm. If you're wondering how exactly the Sealion 6 DM-i stands out within the BYD family, driving range is most certainly its calling card when stacked against all of its other fully-electric siblings. BYD Singapore states that under local driving conditions, the SUV is capable of a "long cruising range" of more than 1,200km when fully refuelled and with its battery fully charged. As demonstrated in its cross-border jaunt earlier in July 2025, its marathoning capabilities make it perfect for longer road trips, with BYD referring to it as a "vehicle that adapts to your lifestyle, and not the other way around". Another quality worth highlighting about the Sealion 6 DM-i's powertrain is that it enables the car to behave more like an EV than an ICE car. With the car operating by default on an 'electric-first' basis, its electric motor is tasked exclusively with powering the front wheels at low to medium speeds, allowing owners to drive about in a silent and emissions-free manner. At medium to high speeds, its 1.5-litre engine is then awoken in the capacity of a generator to feed the battery. Thereafter, it's only when the car is being pushed to its limit that the engine comes in fully to propel the car directly in tandem with the electric motor. As we noted on our first drive with the car, smoothness and refinement are amplified as a result, allowing the Sealion 6 DM-i to boast "creamy" power delivery. Intriguing powertrain aside, the Sealion 6 DM-i excels on the practicality front. While residing within the same mid-sized SUV segment as the Sealion 7, its boxier shape and flatter roofline provides rear passengers with slightly more headroom, with seats that can be reclined for extra comfort. Its 574-litre boot is also generous for its size, and can be further expanded to 1,700 litres with the 60:40 second row folded flat. What's more, as we've come to expect from BYD, standard equipment levels are generous. Front occupants won't have to fight over who gets to charge their phone, thanks to a dual-wireless charging tray, while all on board will get to savour road-trip playlists to the fullest on long drives with the car's premium Infinity by Harman Kardon sound system. Amidst these creature comforts, a full-digital dashboard, consisting of a 12.3-inch curved instrument cluster and 15.6-inch rotating infotainment touchscreen, adds a good dose of modernity. Furthermore, the Sealion 6 DM-i comes with a full suite of safety assistance systems, including the likes of Emergency Lane Keep Assist, Lane Departure Warning, Blind Spot Detection, and Intelligent Cruise Control. All of these are sure to take some of the stress out of long road trips (as mentioned, this is already a certified border-crosser). Speaking at the launch, James Ng, Managing Director of BYD Singapore and the Phillipines, highlighted the brand's enduring popularity among Singapore buyers, revealing that the 840 units sold in June 2025 had marked the brand's best month for the year so far. The Chinese carmaker has seen its lineup of models steadily increase in recent times, with the Sealion 6 DM-i following hot on the heels of the Sealion 7 that launched in January's 2025 Singapore Motor Show. Within the last 12 months, BYD has also fielded a Cat A-friendly compact electric MPV in the form of the M6, and a full-sized electric MPV with its luxury sub-brand: The DENZA D9. Additionally, the BYD Seal, Atto 3, and Dolphin all received recent updates for the 2025 model year. (In tandem, BYD Singapore has continued to grow its retail network with the latest addition of Jack Cars as an authorised dealer.) And this family is set to grow even bigger still. Soon to be launched in Singapore — as revealed by Ng at the event — is the BYD Atto 2, another compact electric crossover that will sit beneath the Atto 3 in terms of positioning and size. The Sealion 6 DM-i is now on sale in Singapore, and launches with a special price of $212,888 (inclusive of a guaranteed COE) — which places it slightly above the single-motor Sealion 7. The plug-in hybrid SUV also retails with a six-year car warranty, 10-year battery warranty, and 10 years worth of free servicing*. *Terms and conditions to apply Car model Price as of press time (including COE) BYD Sealion 6 DM-i Plug-in Hybrid $212,888 [[nid:719528]] This article was first published in sgCarMart .

Shunsaku Tamiya, who brought perfection to plastic race car models, dies at 90
Shunsaku Tamiya, who brought perfection to plastic race car models, dies at 90

Straits Times

time9 hours ago

  • Straits Times

Shunsaku Tamiya, who brought perfection to plastic race car models, dies at 90

Under the leadership of Mr Shunsaku Tamiya, Tamiya Inc won popularity worldwide for making kits that excelled in quality and historical detail. TOKYO – Mr Shunsaku Tamiya transformed his father's former sawmill into a leading manufacturer of plastic model kits, with a passion for detail that once led him to buy and disassemble a Porsche to make a perfect miniature version. He died July 18 of undisclosed causes at age 90. For more than four decades, Mr Tamiya led the company that bore his family's name, turning it into one of the world's largest makers of build-it-yourself plastic model kits of race cars and military vehicles. Since producing its first such kit in 1960, of the Japanese World War II battleship Yamato, Tamiya Inc has become a globally known brand that also produces remote-controlled cars. Under the leadership of Mr Tamiya, who replaced his father as the company's president, Tamiya Inc won popularity worldwide for making kits that excelled in quality and historical detail. In 1967, one of its miniature models so faithfully reproduced a Formula One racing car, down to the location of a starter battery beneath the driver's seat, that the maker of the original vehicle, Honda Motor, wondered if he had access to trade secrets but decided to let it pass. His pursuit of accuracy also once took him to the embassy of the Soviet Union in Tokyo, where he sought details about Warsaw Pact tanks. This drew the attention of Japan's public security bureau, which placed him under surveillance for a time. Mr Tamiya was serving as the company's chair at the time of his death. According to the company, he still enjoyed standing at the entrance to an annual trade show near Tamiya's headquarters in Shizuoka, a city south of Tokyo, to watch the children come in. 'He turned our city of Shizuoka into a world center of plastic models,' Mayor Takashi Namba told reporters after learning of Mr Tamiya's death. 'He also built a global brand. I truly respected him.' Although the company continues to produce model kits in Shizuoka, it also opened a factory in the Philippines in 1994. Top stories Swipe. Select. Stay informed. Singapore Almost half of planned 30,000 HDB flats in Tengah to be completed by end-2025: Chee Hong Tat Singapore Students hide vapes in underwear, toilet roll holders: S'pore schools grapple with vaping scourge Singapore 'I've tried everything': Mum helpless as son's Kpod addiction spirals out of control Singapore Black belt in taekwondo, Grade 8 in piano: S'pore teen excels despite condition that limits movements Singapore As Asean looks to nuclear energy, public education efforts are needed: UN nuclear watchdog chief Asia Thousands rally in downtown Kuala Lumpur calling for the resignation of PM Anwar Asia Death toll climbs as Thai-Cambodia clashes continue despite calls for ceasefire Born in Shizuoka on Dec 19, 1934, Mr Tamiya's lifelong passion for military vehicles began as a child during World War II, when he spotted a US B-29 bomber passing high overhead. 'It was the first time I had ever seen an enemy plane, a shining object at the end of a long white contrail in the cloudless blue sky, but I was fascinated by its leisurely flight in the stratosphere,' he told the Shizuoka Shimbun, his home city's newspaper, in 2001. 'It was a spine-chilling sight, but for a boy who loves models, it was also an exciting sight.' After the war, his father, Yoshio, founded a sawmill and lumberyard called Tamiya Shoji & Co. When Mr Shunsaku Tamiya joined after college in 1958, the family business was making simple wooden kits for building cars. With his father, Mr Tamiya led the company into the production of plastic models, then still a relatively new product. He visited the United States for the first time in 1966, when he struggled to sell kits. He was eventually able to 'overthrow America' in the kit business by offering superior quality. 'We showed we were serious about making good products,' he said in a 2003 interview with the Shizuoka Shimbun. The company, which was renamed Tamiya in 1984, also won customers because of the meticulous accuracy of its kits. Mr Tamiya visited military museums around the world to research archives and take pictures of tanks, warships and aircraft. At locations where photography wasn't allowed, he memorised the details, recording them in a notebook afterward. During the Cold War, he got his first up-close look at Soviet tanks at a museum in Israel, which had captured them from Arab countries during the Six-Day War. His company also built model kits of racing cars as well as radio-controlled cars. To make a miniature replica of a Porsche 911 that was perfect down to the shape and placement of the engine, he bought one of the expensive German sports cars. He did this 'not to drive it, but to use it as a reference,' Mr Tamiya wrote in a memoir. 'I brought the 911 into my garage and disassembled everything that could be disassembled.' He kept Tamiya Inc a family-owned business after taking over as president in 1984, four years before his father died. In 2008, he made himself chairman when his son-in-law took over as president. After the son-in-law died of an unspecified illness at the age of 59 in 2017, Mr Tamiya returned to serve as president and chairman. Last year, he named Mr Nobuhiro Tamiya, the husband of a granddaughter, to replace him as president, with the elder Tamiya once again staying on as chairman. The company did not release details of other surviving family members. NYTIMES

Kia aims to win US market share as tariffs force rivals to pull back
Kia aims to win US market share as tariffs force rivals to pull back

Business Times

time16 hours ago

  • Business Times

Kia aims to win US market share as tariffs force rivals to pull back

[SEOUL] South Korea's Kia Corp said on Friday (Jul 25) that it aims to increase its US sales and market share in the second half, driven by sales of new hybrid and petrol vehicles and as some rivals are expected to raise prices to cope with tariffs. Kia, which together with affiliate Hyundai Motor ranks as the world's No 3 carmaker, said its operating profit in the second quarter slumped by a quarter as it took a hit of 786 billion won (S$726 million) from US tariffs and warned of a bigger blow in the second half. Still, it increased April to June US sales by 5 per cent as consumers brought forward some car purchases due to concerns that US tariffs would lead to higher vehicle prices. Kia also credited solid sales of its new Carnival hybrid sport utility vehicles for the rise. It said it aimed to increase its US sales by 7 to 8 per cent in the second half of the year, even as overall auto sales in the US market are expected to slump by 10 per cent, leading to a gain in market share to over 6 per cent from 5.1 per cent in the first half. It expects Carnival and K4 small car sales to drive the gains, while some Japanese automakers are raising prices. While Kia and Hyundai import about two-thirds sold in the US market, making them more exposed to US tariffs than major rivals, Kia said on Friday that it has not yet made detailed plans to raise prices, instead focusing on growing its US business. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'We believe that we will be able to use the difficult environment as a good opportunity to level up (our market share and sales), and that's Kia's strength,' Kia chief financial officer Kim Seung-jun said during a conference call. Samsung Securities analyst Esther Yim said Kia's strategy to boost sales of hybrids, which are imported from South Korea, could weigh on its profit, but that could be in part offset by Kia's efforts to limit the impact. To mitigate tariffs' effects, Kia's South Korean factories will divert some of its shipments from the United States to other markets, such as Canada, the carmaker said. Kia also said its US factory in Georgia aims to shift some electric vehicle (EV) production to other vehicles such as Sportage, Sorento and Telluride, as the United States is set to end its EV subsidies at the end of September. Kia shares were down 0.9 per cent. REUTERS

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store