KKR (KKR) and Bain Capital (BCSF) are sparing no expense in the battle for Seven & i Holdings’ (SVNDF) non-core assets. Both private equity giants have placed offers exceeding $5 billion in the first round of bids, according to Reuters. KKR’s offer stands at around 800 billion yen ($5.1 billion) for York Holdings, a subsidiary of Seven & i, while Bain has offered an even heftier sum of 1.2 trillion yen.
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Seven & i Aims to Divest Non-Core Businesses
The bids for Seven & i’s assets come as the retailer looks to divest non-core businesses, including its supermarket operations and subsidiaries like Akachan Honpo and Denny’s Japan. Reuters notes that all three bidders—KKR, Bain, and Japan Industrial Partners—successfully advanced to the next stage of the process. The retail giant is set to decide on the final offer by spring 2024.
Possible Management Buyout on the Horizon
Meanwhile, Seven & i’s founding family is reportedly in talks for a separate buyout deal to fend off a massive $47 billion takeover bid from Alimentation Couche-Tard. With February as the key decision-making point, the battle for Seven & i is far from over.
Is Seven & i Stock a Good Buy?
Analysts remain cautiously optimistic about SVNDF stock, with a Moderate Buy consensus rating based on 2 Buys and 3 Holds. Over the past year, SVNDF has increased by more than 30%, and the average SVNDF price target of $16.58 implies a downside potential of 3.1% from current levels.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
