Seven & i Setting Up New Delaware Corporation
SEJ Asset Management & Investment will use capital to support 7-Eleven U.S. expansion
Published in CSP Daily News
TOKYO -- Seven & i Holdings Co. Ltd., the Tokyo-based parent company of 7-Eleven Inc., is establishing a new company incorporated in the state of Delaware. Seven-Eleven Japan Co. Ltd., a wholly owned subsidiary of Seven & i, will establish SEJ Asset Management & Investment, which will use its capital to support the business expansion initiatives of 7-Eleven in the United States.
Dallas-based 7-Eleven Inc. is taking steps to expand its operations and increase its revenues and profits, Seven & i said.
To support those initiatives, Seven-Eleven Japan has decided to establish a new company to strengthen the 7-Eleven system in North America.
The board of directors of Seven & i adopted a resolution calling for the establishment of the new company at a meeting held on October 4.
7-Eleven Inc. declined to offer additional details to CSP Daily News.
To establish the new company, Seven-Eleven Japan will make an investment in kind of all of its holdings of 7-Eleven Inc., stock, and will receive common stock and preferred stock issued by the new company.
In addition, Seven-Eleven Japan will invest cash in the new company. Plans call for the new company to acquire the preferred stock from Seven-Eleven Japan after the new company is established.
SEJ Asset Management & Investment's president and CEO is Ryoji Sakai (director and managing executive officer of Seven-Eleven Japan).
Its principal businesses will be the management of tangible and intangible fixed assets received from 7-Eleven Inc. and leasing operations related to 7-Eleven Inc. It has assets of $2.611 billion
Seven & I said that it expects the influence on consolidated results for the fiscal year ending February 2013 to be minimal, but this establishment is expected to contribute to profits over the medium to long term.
7-Eleven Inc. operates, franchises or licenses approximately 9,500 7-Eleven stores in North America. Globally, there are some 48,000 7-Eleven stores in 16 countries. During 2011, 7-Eleven stores worldwide generated total sales close to $76.6 billion.
Seven & i is a Japanese diversified retail group, now the fifth largest retailer in the world, with 35,000 stores in approximately 100 countries.