Investing.com — Apollo Global Management (NYSE:) is considering taking a significant stake in Seven&i's founding family, Ito, in a bid for the Japanese private-shop chain, Bloomberg reported on Friday.
The Bloomberg report stated that the giant American private equity company is considering investing up to 1.5 trillion yen ($9.5 billion) to acquire a stake in the company after it turns into a private company.
Apollo could join the Ito family and Itochu Corp as major investors in the company 7&I HOLDINGS LIMITED (Tayo:). Bloomberg reported that the Ito family is considering a commitment of about 500 billion yen, and the Itosho family more than a trillion yen.
The current privatization proposal calls for equity stakes of up to 4 trillion yen, with the rest of the financing coming from banks.
Seven & i, which owns the popular 7-Eleven supermarket chain, has become the target of increased takeover interest in recent months, following Canada's decision. Alimentation Coach Tard Company (TSX:) offered about 7.5 trillion yen for the company. While Seven&i rejected the offer, reports followed that the company's founding Ito family were also considering taking the company private in a consortium buyout.
Seven&i's market capitalization was about 6.3 trillion yen on Friday. Its shares jumped more than 5% even as it reported a 24% year-over-year decline in third-quarter earnings.
