By Kosaku Narioka

A son of the founder of the Japanese retail giant that owns the 7-Eleven convenience-store chain has proposed a buyout of the holding company, the latest twist in a global standoff between the Japanese company and the Canadian owner of Circle K, which has proposed its own takeover deal.

Junro Ito, vice president at Seven & i Holdings, is the second son of founder Masatoshi Ito, who started from a single outlet in Japan to build the business empire behind one of the world's biggest and best-known convenience-store brands. Seven & i said he and an affiliated firm made the proposal, but didn't provide details.

Canada's Alimentation Couche-Tard had previously made a $39 billion bid for Seven & i, which the Japanese company rejected. Last month, Seven & i said it had received a new bid from Couche-Tard, without elaborating.

The Japanese retail company said Wednesday that its special committee, comprising independent directors, is reviewing the nonbinding proposal made by Vice President Junro Ito and his affiliated firm. The affiliated firm held an 8.2% stake in the 7-Eleven owner as of the end of August.

Seven & i said nothing has been decided on the proposal.

Shares of the convenience-store giant surged on the news. The stock ended 12% higher, hitting its highest level since the 2005 listing that followed the combination of its supermarket, convenience-store and restaurant businesses. Wednesday's jump boosted the market cap to about 6.5 trillion yen, equivalent to $42 billion.

Stephen Hayes Dacus, chair of the special committee, said it is reviewing all options objectively to realize the company's potential shareholder value, including the proposal from Ito, the takeover offer from Couche-Tard and any initiatives that can be implemented on its own.

Under pressure from some foreign shareholders in recent years, the 7-Eleven owner has been trying to improve profitability by focusing on its core convenience-store business and restructuring other segments. It shed some businesses, such as unprofitable department-store operator Sogo & Seibu. In April, Seven & i said it was considering listing the supermarket business.

Last month, Seven & i slashed its profit forecast for the current fiscal year, which ends in February, as sluggish demand among middle- to low-income U.S. consumers amid inflation and higher interest rates hurt its overseas sales.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

November 13, 2024 07:38 ET (12:38 GMT)

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