*

Seven & i ( SVNDF ) to split off underperforming businesses into

holding

company

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Japanese 7-Eleven stores are highly profitable, overseas

stores

lag

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U.S. business hurt by weak macro environment, decline in

cigarette sales

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Executives avoid mention of buyout offer from Canadian

suitor

By Rocky Swift

TOKYO, Oct 24 (Reuters) - Japanese conglomerate Seven &

i Holdings ( SVNDF ) laid out a growth plan on Thursday that

focused on its core 7-Eleven convenience stores and avoided any

mention of a $47 billion takeover bid from Canada's Alimentation

Couche-Tard ( ANCTF ).

Seven & i ( SVNDF ) held an "investor day" to brief analysts and

investors on its plan to hive off underperforming businesses and

expand overseas as it battles to win over critics and remain

independent.

Chief Executive Ryuichi Isaka made no mention of the offer

or longstanding shareholder criticism of capital allocation and

other aspects of the business, saying the retailer's

restructuring path would provide the "discipline to pursue

growth."

"We're now at a stage where we can expect to further

increase our corporate and shareholder value by seizing growth

opportunities in the global market," Isaka said.

Seven & i ( SVNDF ) expects to roughly double sales to 30 trillion yen

($197 billion) come 2030 by expanding in overseas markets such

as Vietnam and Australia, with plans to replicate domestic

strengths in fresh food offerings to attract customers and

bolster profit margins.

Under the restructuring announced, Seven & i ( SVNDF ) said it would

split off its supermarket and some 30 other "non-core" units

into a holding company. Market reception so far has been

underwhelming, with its share price moving little since the plan

was first detailed earlier this month.

Some foreign shareholders have long called for a break-up of

the conglomerate, whose other businesses include restaurants and

a bank. One investor, U.S. fund Artisan Partners, said the

latest restructuring plan was "too little, too late" and urged

Seven & i ( SVNDF ) to engage with Couche-Tard.

Thursday's three-hour briefing and materials made no mention

of Couche-Tard's offer, nor did analysts or shareholders ask

about it.

While its Japanese 7-Eleven convenience stores are a

money-spinner, Seven & i ( SVNDF ) has been hobbled by poor performance at

its supermarkets, including the Ito Yokado stores that make up a

part of the holding company formed about two decades ago.

But overseas 7-Eleven stores are less profitable. In Japan,

the operating margin is 27%, far above the 3.5% of 7-Eleven

stores elsewhere.

The U.S. business has been hurt by a weak macro environment

that weighed on consumer appetite, North America chief Joseph

DePinto said at the briefing.

Fuel revenue has been flat while a decline of cigarette

sales compared to before the COVID-19 pandemic has had a

"significant impact" he said. The group was focusing on fresh

food to boost sales, he said.

"Clearly the last year has been difficult, and we're not

happy with the performance," DePinto said.

($1 = 152.3500 yen)