Latest news with #SevenBank
Japan Times
28-05-2025
- Business
- Japan Times
Seven & I's move away from banking leaves market wondering
Seven & I Holdings wants to be less of a bank and more of a convenience store operator, and the market is somewhat skeptical about that transformation. The plan, which has been reported in the media but not confirmed by the company, is to sell Itochu a partial stake in Seven Bank and focus on the business of running 7-Eleven. This doesn't really add up, according to at least one analyst. The two businesses — banking and convenience store — are just too dependent on each other, and the argument that separating them will somehow make 7-Elevens better might not impress investors. 'In our view, Seven & I's convenience store business and Seven Bank's operation are highly interconnected,' said Takahiro Kazahaya, an analyst at UBS Securities. 'We don't think the market will necessarily see the sale of Seven Bank as a move to strengthen the 7-Eleven convenience store business.' The involvement of Itochu is also an issue, as the trading company owns Family Mart, 7-Eleven's arch rival. Canada's Alimentation Couche-Tard has been trying to acquire Seven & I, which has responded by working to increase shareholder value and telegraphing this commitment to a renewed focus. It is changing its name to 7-Eleven Corp. Seven & I has already said it is planning to deconsolidate Seven Bank from its balance sheet by the end of this fiscal year but has not disclosed how. Seven & I owns 46% of Seven Bank. According to local press reports, Seven & I is seeking to sell some shares to Itochu, which is looking to acquire about 20% of Seven Bank shares. The reporting also indicated that Itochu might install Seven Bank ATMs at Family Mart stores. Seven & I said in a statement last week that it has not released any information about Seven Bank and Itochu. Kazahaya said if Seven & I is really planning to sell a Seven Bank stake to Itochu, it might damage relations with 7-Eleven franchise owners, as Seven Bank ATMs are a strong competitive edge. The daily average number of transactions per Seven Bank ATM was over 108 last fiscal year, while the figure for Lawson Bank's ATM was 59. And when people enter a convenience store to use an ATM, they will often buy something while they are there. While Family Mart does not disclose data on ATM usage, if Itochu decides to set up Seven Bank ATMs at Family Mart stores, it could frustrate 7-Eleven franchise owners who compete with Family Mart in their areas, Kazahaya said. 'The convenience store business is a franchise system that is built on the trust of franchise owners, so it's really crucial to keep them satisfied,' he said. Seven & I would need to carefully explain the move to those owners if the company really decides to proceed with it, he added. For Itochu and Family Mart, acquiring Seven Bank shares would help improve competitiveness. Family Mart does not have a banking business and outsources ATM operations. Seven & I and Lawson run banks and have their own ATMs. Obtaining a license to run a bank comes with regulatory hurdles, so Itochu could avoid those if it ties up with Seven Bank, said Hironari Nozaki, a professor at Toyo University. Itochu could install Seven Bank ATMs at Family Mart stores and dominate the convenience store ATM competition. But Nozaki believes that room for growth might be limited in the longer-term. This is because Seven Bank's business model is quite different from other banks, as it heavily relies on ATM fees rather than interest income. Last fiscal year, ATM fees generated more than 80% of the total revenue. 'It's highly likely that the number of ATM transactions will taper off in the future, since cashless payments are expected to become more popular,' Nozaki said. Itochu was a potential investor in efforts to take Seven & I private as a takeover defense against Couche-Tard. The founding family of Seven & I and other investors were considering such a move through an ¥8 trillion ($55 billion) buyout. But Itochu announced in February that it decided not to join the transaction after it found that capital raising would be difficult. Earlier this month, Seven & I and Couche-Tard signed a nondisclosure agreement.
NHK
21-05-2025
- Business
- NHK
Seven & i plans to sell partial stake in Seven Bank to Itochu
The Japanese operator of the 7-Eleven convenience store chain is planning to sell part of its bank unit to major trading firm Itochu. The plan by Seven & i Holdings is part of its strategy to focus on its core convenience-store business as it faces a takeover proposal. The bid comes from Alimentation Couche-Tard, the operator of Canada's leading convenience-store chain. Sources say that Seven & i is making arrangements to sell part of its 46-percent stake in Seven Bank to Itochu. The shares involved come with voting rights. The two firms are expected to determine the size of the stake through discussions. Seven & i aims to lower the ratio to under 40 percent, which would allow it to remove the bank from the group's consolidated accounting statements. Seven Bank operates ATMs mainly at 7-Eleven stores. Itochu has the FamilyMart convenience-store chain under its umbrella. The ATMs in those stores are outsourced. The trading firm may replace the machines with those of Seven Bank.
Japan Times
21-05-2025
- Business
- Japan Times
Seven & I considers selling portion of Seven Bank shares to Itochu
Seven & I Holdings is considering selling part of its stake in Seven Bank to Itochu, people familiar with the matter said Tuesday. The move is part of Seven & I's efforts to improve its corporate value by focusing on its convenience store business at a time when Canadian convenience store operator Alimentation Couche-Tard is trying to acquire the Japanese retailer. Seven-Eleven Japan, Ito-Yokado and York Benimaru — all Seven & I units — owned some 46% of Seven Bank together as of the end of March 2025. Seven & I has said it will lower the stake below 40%. FamilyMart, the convenience store arm of Itochu, a Japanese trading house, may strengthen ties with Seven Bank. FamilyMart currently outsources the management of automated teller machines at its stores to E-net, which is mainly owned by banks. "No decision has been made ... at this time," Seven & I said in a statement about its stake in Seven Bank.
Nikkei Asia
20-05-2025
- Business
- Nikkei Asia
Japan's Itochu seeks to bring Seven Bank ATMs to FamilyMart in tie-up
TOKYO -- Japanese trading house Itochu will branch out into the banking business through a capital tie-up with Seven Bank, with plans to install Seven Bank ATMs at the subsidiary FamilyMart convenience store chain. The copmpany is in talks to take a roughly 10% stake in Seven Bank, a subsidiary of 7-Eleven parent Seven & i Holdings, with plans to possibly increase the interest to around 20% in the future.
20-05-2025
- Business
Seven & i Considers Selling Some Seven Bank Shares to Itochu
Newsfrom Japan Tokyo, May 20 (Jiji Press)--Seven & i Holdings Co. is considering selling part of its stake in Seven Bank to Itochu Corp., people familiar with the matter said Tuesday. The move is part of Seven & i's efforts to improve its corporate value by focusing on its convenience store business at a time when Canadian convenience store operator Alimentation Couche-Tard is trying to acquire the Japanese retailer. Seven-Eleven Japan Co., Ito-Yokado Co. and York Benimaru Co., all Seven & i units, owned some 46 pct of Seven Bank together as of the end of March 2025. Seven & i has said it will lower the stake below 40 pct. FamilyMart Co., the convenience store arm of Itochu, a Japanese trading house, may strengthen ties with Seven Bank. FamilyMart currently outsources the management of automated teller machines at its stores to E-net Co., which is mainly owned by banks. "No decision has been this time," Seven & i said in a statement about its stake in Seven Bank. [Copyright The Jiji Press, Ltd.]
