08:38 AM EDT, 10/04/2024 (MT Newswires) -- Seven & i Holdings Co. has approached potential buyers for its Ito-Yokado stores and supermarkets as it seeks to restructure in the face of a takeover approach from Canada's Alimentation Couche-Tard Inc. ( ANCTF ), people with knowledge of the matter said, Bloomberg reported overnight Thursday.

The Japanese retailer has approached private equity funds and other entities about the sale of multiple businesses under its supermarket empire, said the people, who asked not to be identified because the discussions aren't public. Based on a multiple of six to eight times earnings before interest, taxes, depreciation and amortization, the sale could fetch (Yen)320 billion to (Yen)430 billion ($2.2 billion to $2.9 billion), one of the people said.

Bloomberg noted the sale of assets, including part of Seven & i's stake in Seven Bank Ltd., is part of a push to show a greater focus on the retailer's convenience-store business. The owner of 7-Eleven is facing pressure to show that it can command a higher valuation, whether in negotiations or through its own efforts, after rejecting a preliminary approach by Couche-Tard (ATD.TO) as insufficient.

Seven & i hasn't announced anything and nothing has been decided, a representative for the company said.

Discussions are still at an early stage and may be called off, the people added. Seven & i would retain a minority stake as well.

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