Apollo Global Aims for $9.5 Billion Stake in Seven & i Privatization Offer – Bloomberg By Investing.com
Investing.com– Apollo Global Management (NYSE: ) is considering taking a large stake in an attempt by the Ito family of Seven & i founders to privatize the Japanese convenience store chain, Bloomberg reported Friday.
The US private equity giant is considering investing as much as 1.5 trillion yen ($9.5 billion) for a stake in the company after it goes private, according to a Bloomberg report.
Apollo could join the Ito family and Itochu Corp as key investors Seven & i Holdings Co., Ltd. (TYO:). The Ito family is considering an allocation of around ¥500 billion, and Itocha is considering a payout of over ¥1 trillion, Bloomberg reported.
The current privatization proposal envisages equity stakes of up to 4 trillion yen, with the rest of the financing coming from banks.
Seven & i, which owns the popular 7-Eleven convenience store chain, has become the target of increased takeover interest in recent months, after Canada’s Alimentation Couche Tard Inc (TSX: ) offered about ¥7.5 trillion for the company. Although Seven & i rejected the offer, reports followed that the Ito family, the company’s founder, was also considering privatizing the company in a consortium buyout.
Seven & iu’s market capitalization on Friday was about ¥6.3 trillion. Its shares jumped over 5% even though it posted a 24% year-over-year decline in the third quarter.
