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Japan's Seven & i to sell department store unit, Nikkei reports

Published 01/31/2022, 05:35 AM
Updated 01/31/2022, 08:05 PM
© Reuters. FILE PHOTO: The logo of Seven & I Holdings is seen at its headquarters in Tokyo, Japan December 6, 2017. REUTERS/Toru Hanai
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TOKYO (Reuters) -Japanese retailer Seven & I Holdings Co Ltd is in final negotiations to sell its department store unit, Sogo & Seibu, the Nikkei business daily reported on Monday, amid investor pressure to focus on its core convenience store business.

Investment funds and companies are expected to be among the potential bidders with negotiations on price to begin this month, Nikkei reported without citing sources.

Seven & I said in a statement on Tuesday that while it is considering changes to its business portfolio, including selling shares of Sogo & Seibu, nothing has been decided yet.

© Reuters. FILE PHOTO: The logo of Seven & I Holdings is seen at its headquarters in Tokyo, Japan December 6, 2017. REUTERS/Toru Hanai

The company's shares surged as much as 8.8% in early Tokyo trading.

U.S.-based investment firm ValueAct Capital had urged https://www.reuters.com/markets/deals/valueact-urges-seven-i-holdings-listen-consider-strategic-alternatives-2022-01-25 the retailer to consider alternative strategies including the sale of divisions to boost its lagging share price.

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