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KKR and Bain each quote more than $5 bln for Seven & i possessions, sources state

Personal equity companies KKR and Bain Capital each offered more than $5 billion in firstround bids for the noncore properties of Japan's 7 & & i. Holdings, according to individuals acquainted with the matter.

KKR offered around 800 billion yen ($ 5.1 billion) for York. Holdings, an entity due to be spun out of the Japanese merchant,. two of the people stated. Rival U.S. company Bain offered around 1.2. trillion yen, a single person stated. Local buyout company Japan. Industrial Partners provided around 750 billion yen, one stated.

All three firms achieved success in the preliminary of bids. for the assets, according to two of individuals. Reuters talked to. three people about the first-round bids, all of whom declined to. be identified due to the fact that the information hasn't been made public. The size of the quotes has not previously been reported.

The bids surpass the 500 billion yen business worth - a. procedure that includes debt - that the 7-Eleven owner had. expected, according to among the people.

A representative for Seven & & i decreased to comment, stating the. bidding procedure was not public. KKR, Bain and Japan Industrial. Partners likewise decreased to comment.

7 & & i is seeking to hive off non-core organizations,. including its vast supermarket operations, into the York. Holdings system, which will house 31 subsidiaries including the. group's warehouse stores business, infant products store Akachan Honpo and. the company that runs Denny's restaurants in Japan.

Individually, the merchant's founding household remains in speak with. take Seven & & i personal. That offer, a management buyout, is. created to ward off a $47 billion takeover deal from Canada's. Alimentation Couche-Tard.

The 3 personal equity firms will now send legally. binding proposals but may modify their offers following due. diligence, two of the people stated. Unsuccessful bidders from the. first round might still go into settlements if the 3 fail to. reach an arrangement with 7 & & i, two of individuals said.

Seven & & i is intending to select the winning bid as early. as February, one person said. The decision would then be. settled by the spring, another person said.

The starting family has actually also approached Bain and KKR. about mezzanine funding for the management buyout, two of the. people said.

7 & & i's market capitalisation stood at 6.2 trillion. yen as of Dec. 24. The privatisation, if understood, would be the. biggest ever of a Japanese firm.

(source: Reuters)