08:37 AM EDT, 10/24/2024 (MT Newswires) -- Seven & i Holdings Co.'s plan to split in two and expand abroad will help the retailer almost double group revenue, Chief Executive Officer Ryuichi Isaka said in an appeal to shareholders as Alimentation Couche-Tard Inc. ( ANCTF ) seeks to buy the Japanese convenience-store operator, Bloomberg reported overnight Wednesday.

Bloomberg said the retailer aims to reach (Yen)30 trillion ($197 billion) in group sales by the 2030 fiscal year, up from (Yen)17.7 trillion in 2023, with a greater contribution from convenience-store operations in markets abroad.

It noted Seven & i laid out plans earlier this month that will effectively split the company: A business focused on 7-Eleven, convenience stores and gasoline stations, and another made up of less profitable retail operations. The retailer's biggest-ever overhaul is designed to boost its value in the face of a buyout proposal from Couche-Tard that values Seven & i at about (Yen)7.1 trillion.

"Investors should expect global growth," Isaka told analysts Thursday during an investor presentation. Executives are set to meet with key investors in the next week to lay out plans to restructure and expand. "There are countries and regions we haven't reached yet, where there's room for our global network to expand further."

For Japan, the goal is to surpass (Yen)6 trillion in annual domestic sales over the same period, Isaka added.

Bloomberg noted Seven & had rebuffed an earlier, lower offer by the Canadian operator of Circle K stores, saying that it undervalued the company, but hasn't yet responded to Couche-Tard's latest proposal to pay $18.19, or (Yen)2,777, per share. Shares in the Japanese company were trading at (Yen)2,249 during morning trading in Tokyo Thursday, below that price.

Earlier this month, Couche-Tard's top management came to Japan but weren't able to enter negotiations with Seven & i. Chairman and founder Alain Bouchard said during an interview in Tokyo that he's confident the Canadian company can address regulatory concerns.

"We have invited them, we have tried to organize a meeting, but it didn't work, but it will eventually," Bouchard said. The Canadian suitor is optimistic it can arrange financing and address any regulation requirements for a deal.

Bloomberg noted this is the third time in two decades Couche-Tard has tried to enter a deal with Seven & i. A deal would complete the biggest-ever takeover of a Japanese company.

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