Japan-based retail holding company Seven & i Holdings (JP:3382) is reportedly set to begin a majority stake sale in its supermarket business, including its flagship Ito-Yokado, by December 2024. According to Nikkei, the company aims to sell the supermarket business to foreign investment funds, among other potential buyers. Seven & i shares gained 3.08% in today’s trading session.
The company recently made headlines after receiving a record takeover offer from its Canadian competitor Alimentation Couche-Tard (TSE:ATD). However, the company rejected the offer later.
Seven & I Holdings is a holding company, managing various businesses through its subsidiaries.
Seven & i Plans Majority Stake Sale in Supermarkets
Nikkei reported that Seven & i intend to start soliciting bids by year-end to offload its majority interest in an intermediate holding company. This entity oversees its general merchandising brands, such as Ito-Yokado and York-Benimaru. After the divestment, Seven & I will maintain a minority stake in the supermarket business.
By divesting Ito-Yokado, which is struggling with profitability, Seven & i aims to enhance its corporate value and set a higher standard for Couche-Tard’s next potential takeover offer.
This news contrasts with the company’s earlier plans to list its supermarket business. In April, Seven & i announced it was exploring a potential listing of its supermarket business.
Is 7-Eleven a Good Stock?
As per the consensus among analysts on TipRanks, 3382 stock has been assigned a Moderate Buy rating based on one Buy and two Hold recommendations from analysts.
Last month, analyst Natsuko Douglas from Macquarie reiterated a Buy rating on the stock, forecasting 36.21% upside potential. Douglas is bullish on the stock as he expects a robust first-half performance. Seven & I will release its half-yearly results for FY25 on October 10.
Overall, the Seven & i Holdings share price target of ¥2,331.18 implies an upside of 9.5% from the current share price level.
