Latest news with #Stephen Dacus
CTV News
5 days ago
- Business
- CTV News
Seven & i's North American business IPO to fund quicker growth, says CEO
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 US$46 billion offer last month citing a lack of engagement from Seven & i, which precipitated a nine per cent fall in the latter's share price that reflected investor skepticism about Seven & i's standalone growth plans. Regarding the withdrawal, Dacus said Couche-Tard never had an actionable plan to surmount regulatory hurdles in the U.S., adding that the fact its performance had suffered in the last year may have fed into its decision to step back from negotiations. 'I'm not surprised it ended the way it did,' Dacus said. Couche-Tard did not immediately respond to a request for comment. Investors have been impatient with the pace of change at Seven & i, and at the briefing analysts questioned the prospects for Seven & i's latest plan, which centered on management processes and did not introduce new growth initiatives. In Japan, Seven & i faces stiff competition from faster-growing rivals Family Mart and Lawson, while in the U.S., analysts and investors say lackluster profit margins belie its potential as the largest convenience store chain in the country. Analysts also questioned whether listing the North American business would generate shareholder value but Dacus said the capacity to take on more debt would allow Seven & i to pursue more aggressive growth opportunities, without specifying specific opportunities. 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, it 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. (Reporting by Anton Bridge; Editing by Christopher Cushing and Muralikumar Anantharaman)
NHK
5 days ago
- Business
- NHK
Seven & i shifts strategy to add 1,000 Japan convenience stores
Japanese retail giant Seven & i Holdings says it will refocus strategy on its mainstay convenience store business to boost earnings. The move comes after Canadian rival Alimentation Couche-Tard withdrew a 47 billion-dollar takeover offer last month. "We are at a turning point in our company's history so this transformation is extremely important for us now," said Seven & i Holdings President and CEO Stephen Dacus. The parent of the 7-Eleven operator says it will open 1,000 outlets in Japan by fiscal 2030, adding to the more than 21,000 current stores. It will also upgrade outlets to offer on-site baked foods, such as bread. As part of the strategy, Seven & i plans to unload other businesses, including restaurants and supermarkets. It will invest 3.2 trillion yen, or about 22 billion dollars, by fiscal 2030 aiming to increase annual revenue to 11.3 trillion yen from the current 10 trillion.
Japan Times
5 days ago
- Business
- Japan Times
Seven & I details store opening targets for standalone plan
Seven & I Holdings said it will open 1,300 new international stores, mainly in the United States, in an update to its midterm plan after Circle-K operator Alimentation Couche-Tard dropped its ¥6.77 trillion ($44.9 billion) takeover proposal. The company said it will also add 1,000 net new outlets in Japan as part of its growth strategy. The goal is to "satisfy changing customer needs with new formats and accelerate openings,' the operator of 7-Eleven stores said in a presentation released ahead of a briefing on Wednesday. Stephen Dacus, who took over as chief executive officer earlier this year, is under pressure to deliver on a plan to streamline Seven & I around convenience stores. The failed deal has intensified pressure on the CEO to reassure investors skeptical of the company's turnaround strategy, which involves narrowing its business focus to convenience stores, divesting lower-margin units, and aggressively returning cash to shareholders. The yearlong pursuit of what would have been the largest foreign takeover of a Japanese company ended in acrimony last month. Couche-Tard accused Seven & I's board of a "calculated campaign of obfuscation and delay,' while Seven & I argued that the suitor failed to take antitrust concerns seriously and lacked an understanding of how business is conducted in Japan. Seven & I's stock dropped more than 10% in the days after Couche-Tard walked away. They have since recovered, but remain almost 20% down from a year before, underscoring investors' concerns over the turnaround plan. The retailer's recent history, punctuated by clashes with activist investors, underscores a pattern of reform driven largely by external pressures rather than internal initiative. Even before Couche-Tard's bid, Seven & I had a track record of implementing reforms under outside pressure. Two years ago, activist fund ValueAct Capital Management pushed to boost the company's valuation and attempted unsuccessfully to oust then-CEO Ryuichi Isaka. The campaign helped fuel Seven & I's decision to sell its Sogo & Seibu department stores to Fortress Investment Group in 2022 for ¥250 billion. In 2016, concerns raised by activist fund Third Point over executive appointments resulted in the exit of former chairman Toshifumi Suzuki and elevated Isaka to the top post.
CNA
5 days ago
- Business
- CNA
Seven & i's North American business IPO to fund quicker growth, says CEO
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)
CNA
5 days ago
- Business
- CNA
Seven & i's North American business IPO to fund more aggressive growth, says CEO
TOKYO :Japanese convenience store giant Seven & i Holdings' planned listing of its North American operations would provide additional debt capacity 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.
