TOKYO, July 16 (Reuters) - Japanese retail giant Seven & i Holdings is in the final stages of talks to take a stake in Polish convenience store operator Zabka Group, the Nikkei business daily reported on Thursday, sending Zabka's shares to a new all-time high.
Seven & I is considering acquiring Zabka shares held by investment funds, and the size of the investment will likely amount to several hundred billion yen (several billion dollars), the newspaper said.
As of 1153 GMT, Zabka's shares were up 15.9%,
while Seven and i's shares gained 2.2%.
Seven & I operates 7-Eleven stores worldwide, with Japan and the U.S. being its largest markets.
Seven & I has been under pressure from investors for years over lacklustre returns and faced calls for it to focus on its core convenience store business.
The company last year agreed to sell its supermarkets business, comprising stores that are much bigger than convenience stores and which operated under separate brand names, to private equity firm Bain Capital.
Polish Finance Minister Andrzej Domanski told a news conference that his understanding was that Seven & I is considering buying a double-digit stake in Zabka.
mBank analyst Janusz Pieta said the news alleviates investor concerns over a supply overhang from CVC-controlled entity Heket Topco, which holds a 38% stake in company that investors expected would eventually be sold.
A deal would see a significant block of shares transferred to a strategic investor rather than the open market, he added.
Pieta also noted that the move reduces the risk of Seven & I becoming a direct competitor in Europe and could support Zabka's international growth.
Zabka currently operates 13,063 stores in Poland and Romania.
Seven & I was not immediately available for comment because of a company holiday. Zabka said it does not comment on any rumours referring to the potential secondary transactions.
(Reporting by Kiyoshi Takenaka in Tokyo, Karol Badohal in Warsaw, Alicja Surdy in Gdansk. Editing by Mark Potter)
