Investing.com – Apollo Global Management (NYSE:) is considering taking a large stake in the Ito family’s bid to buy out the Japanese convenience store chain, Bloomberg reported Friday.
The US private equity giant is considering investing 1.5 trillion yen ($9.5 billion) for a stake in the firm once it goes private, a Bloomberg report said.
Apollo may join the Ito family and Itochu Corp as key investors. Seven & i Holdings Co., Ltd. (TIO:). The Ito family is considering an allocation of about 500 billion yen, while the Itochu family is considering more than 1 trillion yen, Bloomberg reports.
The current privatization proposal calls for up to 4 trillion yen in shares, with the rest of the financing provided by banks.
Seven & i, which owns the popular convenience store chain 7-Eleven, has been the subject of increased takeover interest in recent months after the Canadian company Power Sofa Tard Inc. (TSX:) offered about 7.5 trillion yen for the company. Although Seven & i rejected the offer, there were reports that the firm’s founding Ito family were also considering taking the firm private as part of a consortium buyout.
Seven&i’s market capitalization was about 6.3 trillion yen on Friday. Its shares jumped more than 5% even as its third-quarter profit fell 24% year over year.