Japanese company Seven & and Holdings, operator of chain convenience stores 7-Eleven, reported, that profit operating in the last quarter declined by one quarter, not meeting analysts’ forecasts. As explains the company, inflation has affected consumer spending in Japan and North America.
Profit Seven & and Holdings fell to 128 billion yen (810 million dollars) in the last three months from the end of November, which is below an analyst’s forecast of 138 million yen.
Weak results increase pressure on the dealer, to prove, that it can improve its corporate value at the time when it refuses the proposal to acquire worth 47 million dollars from the Canadian Alimentation Couche-Tard company.
Takeover or purchase management – what future 7-Eleven
After offering takeover from the ACT, the family founding group has begun discussions on the takeover of the company by its management, which was valued at
about 58 billion dollars – that would be the largest management buyout in Japan’s history.
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This move would enable the group to continue operating under the current management and remove the pressure related to the necessity of selling unprofitable assets. Some analysts suggest also, that this may be a strategy to force a higher offer from ACT.
The company has also accelerated plans to focus on its activity related to convenience stores, selling a number of assets unrelated to its main activity, including some network supermarkets and convenience stores.
New business unit
In October Seven & and announced, that it would create an individual business – York Holdings – which buys 31 companies with subsidiaries, with with the incentive to acquire external investments before the eventual debate on the stock market. In last month the first round of licensing of these was completed.assets, a giants private equity, Bain Capital and KKR, offered after over 5 billion dollars.
The company has heldprojectedprofitatalevelof403billionyenbytheendofFebruary.InOctoberhowever, itreduceditsforecastfrom545millionyen,expectingthatinflationwillcontinuetoaffectconsumerexpenditures.
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