TOKYO (Kyodo) -- Seven & I Holdings Co. is considering an initial public offering of its North American convenience store subsidiary to raise cash to support a management buyout proposed by its founding family, sources familiar with the matter said Saturday.

The value of 7-Eleven Inc., a major profit-making division of the Japanese retailer, is estimated at around 4 trillion yen ($26 billion) to 5 trillion yen.

Seven & i hopes to use the proceeds from the sale of the subsidiary's shares to help fund the management buyout, estimated at around 9 trillion yen.

A member of the founding family proposed the buyout plan to fend off a takeover bid from Canadian convenience store giant Alimentation Couche-Tard Inc., the operator of Circle K convenience stores, but how to raise the necessary funds remains unclear.

Which market the shares of 7-Eleven would be listed on has yet to be decided. However, Seven & i is expected to retain a stake in the subsidiary if it proceeds with the listing.

As of the end of December 2023, the subsidiary had about 13,000 stores across the United States, primarily located near gas stations. In 2021, 7-Eleven acquired Speedway LLC, which was then the third-largest convenience store chain in the country.

7-Eleven's revenue is forecast at around 8.3 trillion yen for the year through February, accounting for about 70 percent of the Seven & i group's total.

7-Eleven had previously been listed on the New York Stock Exchange but was delisted in 2005 and became a wholly owned subsidiary of Seven & i Holdings.

Seven & i Chief Financial Officer Yoshimichi Maruyama said at a press conference on Jan. 9 that its North American business was undervalued and measures to raise its value were being considered.