Seven & i Rises 2.2% on Report of KKR Interest in Supermarkets

(Bloomberg) -- Seven & i Holdings Co.’s shares rose as much as 2.2% after a report that KKR & Co. is considering an investment in York Holdings, an umbrella company for supermarkets, restaurants and other assets that may be split from Seven & i.

Initial bidding for the unit will close on Nov. 28, broadcaster NHK reported, citing an unidentified person. Sumitomo Corp. is also interested in the business, the Kyodo news agency reported earlier this week.

News of a ¥9 trillion ($59 billion) management buyout led by the founding Ito family emerged after Seven & i outlined a plan in October to split the company in order focus more on its convenience-store operations. Any deal involving the heirs of Seven & i’s founder or a competing ¥7.3 trillion buyout proposal by Canada’s Alimentation Couche-Tard Inc. would effectively supersede the sale of the lower-margin supermarkets business.

Seven & i shares gave up some initial gains and were trading about 1.5% higher in early morning trading in Tokyo on Wednesday. The stock is up almost 40% this year.