04:27 AM EST, 12/26/2024 (MT Newswires) -- KKR (KKR) and Bain Capital have each offered more than $5 billion in first-round offers for the non-core assets of Japan's Seven & i Holdings, Reuters reported Wednesday, citing unnamed people familiar with the matter.

Two sources told Reuters that KKR offered about 800 billion Japanese yen ($5.08 billion) for York Holdings, a Seven & i division set to be spun off, while another source said Bain offered about 1.2 trillion yen. Meanwhile, Japan Industrial Partners offered about 750 billion yen, according to the report.

All three offers exceeded Seven & i's anticipated value of 500 billion yen, the report said.

The private equity firms involved in the bidding may adjust their offers following due diligence. Seven & i expects to select the winning bid as early as February. The decision is expected to be finalized by the spring, according to the report.

The company is also looking to divest its supermarket and other non-core businesses into York Holdings, which will include 31 subsidiaries, such as Akachan Honpo and Denny's Japan.

The retailer's founding family is also negotiating a management buyout to fend off a $47 billion takeover attempt by Canada's Alimentation Couche-Tard, the report said.

Two sources told Reuters that Seven & i's founding family has also approached Bain and KKR about mezzanine funding for the management buyout.

While KKR and Bain did not immediately respond to MT Newswires' request for comment, Seven & i could not be reached immediately.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)