From CNBC: 2024-10-10 05:17:56

Japanese convenience retailer Seven & i Holdings reduced profit forecast for fiscal year ending February 2025 to 163 billion yen, a 44.4% decrease, citing fewer overseas customers. The company reported 52.24 billion yen in net profit in the first half, below its own guidance. It is also resisting a takeover bid from Canadian Alimentation Couche-Tard.

After rejecting an initial bid, Seven & i confirmed receiving a revised buyout offer from ACT, with no disclosed details. Bloomberg reported a 20% increase in the offer to $18.19 per share. Analysts suggest a possible hostile takeover attempt, though financing challenges and investor frustrations could impact the outcome.

Seven & i shares traded at 2,325 Japanese yen on Thursday, a 33% increase since ACT’s buyout interest became public in August. ACT operates around 16,800 stores globally, significantly fewer than Seven & i Holdings. The newly revised offer indicates commitment from ACT leadership, offering a 53% premium over initial trading prices before the bid.

Read more: 7-Eleven’s parent company cuts full-year earnings forecast