7-Eleven owner to divest from supermarket business by year-end

The company will sell a majority stake in a holding company that oversees its general merchandising chains, such as Ito-Yokado and York-Benimaru, which are popular grocery chains in Japan, sources told Nikkei Asia.

Although the company revealed a plan to pursue an initial public offering for the supermarket business in April, it is now expediting the sale of shares to focus more on its convenience store business.

Selling down some of its stake in the supermarket business would allow Seven & i to bring in a partner that could accelerate its overhaul of the unit, and that would also free up its resources to better focus on its core convenience store unit, Reuters reported.

Potential buyers include foreign investment funds, and the company will retain a minority stake.

Bloomberg has also reported the company has approached private equity funds and other parties about a potential sale of Ito-Yokado and supermarkets.

Based on earnings multiples, the sale value could reach JPY320 billion ($2.19 billion), Bloomberg said, citing one of the sources.

Seven & i Holdings has recently declined to sell 7-Eleven to Canada-based Alimentation Couche-Tard Inc, which operates Circle K convenience stores.