Japanese Parent Wants to take 7-Eleven Private
By George Anderson
Seven-Eleven Japan Co. said yesterday it is looking to purchase the remaining 27.3 percent stake it does not own in 7-Eleven
7-Eleven Inc., based in Dallas, has said it has appointed a special committee of its board to consider the $1.2 billion cash
offer. It expects the committee to make its recommendations to shareholders on or before Sept. 19.
The reason for the takeover bid, reports The Associated Press, is Seven-Eleven Japan said believes “7-Eleven must boost investment
in its merchandising, store renovation, distribution and logistics systems, and information systems. The increase in investment, however, is likely to result in lower growth and
profitability for 7-Eleven in the short term.”
Moderator’s Comment: What are your thoughts on Seven-Eleven Japan Co. assuming control of 7-Eleven and taking it private?
As a public company, 7-Eleven, the reasoning goes, would lose investment because its prospects are muted by the need to invest in the business. By taking
it private, Seven-Eleven Japan, which is 51 percent owned by Ito-Yokado, will be able to make those investments without the concerns of what analysts and institutional investors
might want. –
George Anderson – Moderator
- Seven-Eleven Japan offers $1.2 billion for rest of U.S. affiliate 7-Eleven –
The Associated Press/Centre Daily Times