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Now that Couche-Tard has walked away, there's little reason for Seven & i to list 7-Eleven Inc. — one of its most prized businesses — because it no longer needs to fend off an unsolicited offer, according to investors and analysts interviewed by Bloomberg on Thursday. Bloomberg Intelligence estimates the 7-Eleven business could be valued at about $40 billion.
'The company should keep holding its entire stake as the situation has changed,' said Ikuo Mitsui, a fund manager at Aizawa Securities Group Co. '7-Eleven is the company's crown jewel, and it makes more sense for it to keep its 100% stake, which should contribute to higher corporate value.'
Doubts about 7-Eleven's IPO are growing in spite of the parent saying that plans for a US IPO are still in place, even after Couche-Tard's withdrawal. At stake is the future of what could be one of the world's biggest IPOs in years — a person familiar with the matter has said the deal could raise more than ¥1 trillion.
Asked to comment on the doubts, Seven & i said there's currently no change to its IPO plan of the North American convenience store business.
According to Taku Sugawara, an analyst at Iwai Cosmo Securities Co., Seven & i may have considered listing 7-Eleven to push up the listed parent's stock price as part of its defense against Couche-Tard's unsolicited bid.
'Now, the only thing that Seven & i has to do is pursue self-growth,' Sugawara said. 'It's possible for the company to end up scrapping the IPO plan.'
Aizawa's Mitsui took it a step further.
'There's no need now to list the US business,' he said.
--With assistance from Koh Yoshida.
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