Seven & I Holdings said it will consider strategic options, including spinoffs and public listings, as it seeks to boost shareholder returns in response to activist fund ValueAct Capital Management¡¯s questions about its conglomerate structure.
A new review committee of outside board members will recommend changes and execute them, the eight independent directors said in a statement Thursday. Seven & I also announced a change to its finance and credit-card operations, and set a goal of delivering greater shareholder returns via better cash flow, payouts and growth in its convenience-stores business.
ValueAct has been pushing Seven & I to improve its valuation, calling on the Tokyo-based retailer to ¡°pursue bold, structural reform and pursue it with urgency.¡± The investor is pushing Seven & I to narrow its business focus to 7-Eleven, which it said could become a global champion as a convenience store franchise and boost the company¡¯s value.
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