© Reuters. FILE PHOTO: A 7-Eleven store in Toronto, Ontario, Canada, December 13, 2021. REUTERS/Carlos Osorio/File Photo
By Makiko Yamazaki
TOKYO (Reuters) – The independent directors of Seven & i said on Thursday the Japanese retail giant’s board will continue to review strategic alternatives as it faces pressure for broader reforms from some shareholders, including activist ValueAct Capital.
ValueAct, which owns a 4.4% stake in Seven & i and has been driving change since 2020, is seeking a spin-off of its 7-Eleven convenience store chain and is seeking to replace four of 14 board members in a next annual meeting. meeting.
“The board will continue to review the optimal structure of the group and strategic alternatives,” including a possible initial public offering or a spin-off, the eight directors said in a statement.
A source has said that Seven&i president Ryuichi Isaka is one of the board members ValueAct wants to replace.
“The board is currently discussing the shareholder proposals and the new composition of the board, and we plan to announce our decisions in mid-April,” Isaka told reporters and analysts on Thursday.
Last month, Seven&i announced the results of a strategic review and said it would close another 14 Ito-Yokado supermarket stores in Japan and exit its clothing business entirely. However, some investors said the review did not go far enough.
The company said on Thursday that it would reorganize its financial services.
Seven & i said in a separate statement that its operating profit rose 30.7% to a record 506.5 billion yen ($3.85 billion) in the fiscal year to the end of February. For the year beginning March 1, he forecast a profit rise of 1.3%.
($1 = 131.4700 yen)
