Tokyo, March 3 (Reuters) - Seven & i Holdings, the Japanese retail giant embroiled in a takeover battle, is finalizing a plan for its chief executive to step down. It is highly likely that the incumbent, Ryuichi Isaka, who also serves as president, will be succeeded by the company's first foreign chief, according to two knowledgeable sources.
The replacement for Isaka will most likely be director Stephen Dacus, who has been an outside director since 2022. Dacus currently leads a special committee evaluating a $47 billion takeover bid from Canada's Alimentation Couche-Tard and a failed take-private deal proposed by Seven & i's founding family.
The sources mentioned that Seven & i will convene a board meeting on Thursday to make the final decision. The media reports on the management changes were not officially confirmed by the company, according to a statement released by Seven & i.
Dacus's familiarity with the ongoing discussions, particularly regarding Couche-Tard's proposal, makes him a suitable candidate to lead the company's international growth strategy. If appointed, Dacus is anticipated to be succeeded as the head of the special committee by another external director, Paul Yonamine, as per the Nikkei report.
Isaka, who joined the 7-Eleven convenience store operator in 1980 and became its president in 2016, faced criticism from foreign investors like ValueAct Capital over his strategy. Artisan Partners recently urged the company to consider competitive bidding for takeover proposals.
Isaka has expressed confidence in the company's ability to double sales to 30 trillion yen ($199.51 billion) by 2030 through international expansion and an emphasis on fresh food offerings. Following the reports, Seven & i's shares initially rose by up to 4.6%, settling at a 1.8% increase in afternoon trading.
The founding Ito family of the company began discussions last year on taking the convenience store owner private, in what could have been the largest management buyout ever. Seven & i revealed last week that the envisioned $58 billion buyout faced financial hurdles. Alimentation Couche-Tard reiterated its commitment to reaching an agreeable deal with Seven & i.
If successful, Couche-Tard's acquisition of Seven & i would mark the largest purchase of a Japanese firm. Seven & i, classified as "core" to Japan's national security, shows ongoing efforts to sell non-core assets to private equity firm Bain Capital, as reported by Reuters.
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