Seven & i Holdings, the parent company of 7-Eleven, announced on Thursday that it will replace its CEO Ryuichi Isaka with Stephen Dacus, the lead independent outside director, marking the first time a foreigner will lead the company, according to domestic media reports. Dacus will assume the role on May 27, as per a company filing, while Isaka will continue as a senior adviser.
Dacus currently heads the special committee evaluating a $47-billion takeover proposal from Canada’s Alimentation Couche-Tard. However, he stepped down from this committee on March 5, with Paul Yonamine, another independent outside director, taking his place.
In addition to the leadership change, Seven & i unveiled a share buyback program worth 2 trillion yen ($13.2 billion) and plans to list its North American subsidiary, 7-Eleven Inc., in the second half of 2026. The company will retain a majority stake in the subsidiary post-listing. Following the announcement, Seven & i’s shares closed 6.11% higher on Thursday.
Regarding the Couche-Tard bid, Seven & i stated that the special committee is committed to exploring all value creation opportunities, including active engagement with Couche-Tard. However, a significant challenge remains the U.S. antitrust issues any such transaction would face. Speaking at a press conference, Isaka noted there has been no meaningful progress in resolving these antitrust concerns. Dacus echoed this sentiment, highlighting the high regulatory hurdles, particularly in the U.S., and questioning whether Couche-Tard could enhance the company’s value.
Despite these challenges, Seven & i has been collaborating with Couche-Tard to develop a potential divestiture package that ensures competition post-transaction. This $47-billion bid remains the only active offer after a management buyout attempt by the founding family failed to secure necessary financing.
In other developments, Seven & i will sell its superstore business group, which includes supermarkets, to Bain Capital for 814.7 billion yen ($5.37 billion). The deal is expected to close by September 2025. Bain Capital plans to list the supermarket business within three years after enhancing synergies.
The company also intends to reduce its stake in Seven Bank, its banking services arm, to below 40%, leading to its deconsolidation from Seven & i’s balance sheet. The share buyback will be financed through proceeds from the superstore business sale and the IPO of 7-Eleven Inc. These buybacks will begin upon the sale’s completion and are expected to conclude by the 2030 financial year.
Additionally, Seven & i will implement a dividend policy aimed at maintaining or increasing the per-share dividend amount over time, based on cash flow from ordinary business operations.
— news from CNBC