...August 20, 2024 TOKYO (S&P Global Ratings) Aug. 20, 2024--Seven & i Holdings' creditworthiness will come under pressure following a takeover offer, whether or not the deal goes ahead. Seven & i Holdings Co. Ltd. (A/Stable/--) confirmed on Aug. 19, 2024, that Canada-based convenience store operator Alimentation Couche-Tard Inc. (ACT; ###+/Stable/A-2) had made an initial offer to acquire the company. A special committee of Seven & i's board, comprised of independent external directors, will review the offer. If the acquisition closes, we will examine the competitiveness, capital structure, and finances of the resulting company, as well as its operating structure. Details of the deal, including the businesses ACT would acquire and the financing, are not immediately available. If ACT were to finance the acquisition entirely with interest-bearing debt, we estimate that its debt-to-EBITDA ratio could rise to more than 5x. The ratio for the most recent period was 2.5x-2.6x for both companies....
