Canada’s Alimentation Couche-Tard has made a revised bid for Seven & i Holdings, the Japanese company said on Wednesday.
Two people familiar with the matter said Couche-Tard hiked its offer by 22% to about $47 billion.
If the deal goes ahead, the purchase of the 7-Eleven owner would be the largest ever overseas buyout of a Japanese firm.
The sources spoke on condition of anonymity because information about the price has not been made public.
Bloomberg first reported the new proposal of $18.19 per share, which is up from Couche-Tard’s previous rejected offer of $14.86 per share, or about $38.5 billion.
Seven & i said in a statement that the new proposal was private and non-binding, and it planned to keep the negotiations confidential as requested by Couche-Tard.
Couche-Tard, the owner of Circle K, declined to comment.
Following the news, shares of Seven & i surged nearly 12% before pairing gains to finish the day up 4.7% – indicating some doubt among investors that a deal will happen.
Last month, the Japanese company said that Couche-Tard’s initial bid “grossly undervalues” the company and emphasised its plans to boost corporate value on its own.
Analysts and investors are awaiting details of potential value enhancement plans at the group’s second-quarter earnings due on Thursday, which the Nikkei reported would show a 20% year-on-year drop in operating profit as inflation hit consumer spending in its US business.
Nikkei previously reported that Seven & i plans to seek buyers for a majority stake in its supermarket business by the end of the year.
Read More: 7-Eleven Owner Seven & i To Start Sale Of Majority Stake By Year End – Nikkei
