Canadian food company Alimentation Couche-Tard has increased its acquisition offer for Seven & I Holdings, the parent company of 7-Eleven convenience stores, by more than a fifth, valuing the Japanese retail giant at $47 billion. Sources close to the matter revealed that Couche-Tard's new offer last month was $18.19 per share, more than 20% higher than the previous acquisition offer that was rejected. If the deal goes through smoothly, it will be the largest overseas acquisition of a Japanese company in history.

Seven & I stated that it could not comment as the company is determining the facts of the report. The company has not publicly disclosed any new approaches from Couche-Tard.

Following the announcement, Seven & i's stock price in Japan soared by more than 10%, then the increase receded. As of the time of writing, the stock price rose by 4.7% to 2,335 yen ($15.74).

An Asian investor in the Japanese company stated that the reported proposal would put new pressure on Seven & i, forcing them to seriously consider Couche-Tard's offer. Seven & i said last month that Couche-Tard's initial offer "grossly underestimated" the value of the company and emphasized its plan to enhance the company's value on its own. Analysts and business leaders said that by doing so, the Japanese company must now demonstrate how it plans to bring better returns to investors.

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However, the Asia-based investor said that since Couche-Tard proposed the acquisition offer in August, Seven & i has so far failed to substantially boost its stock price, adding that the Japanese company should now take action to engage with the Canadian suitor.

Analysts and investors are awaiting details of potential value enhancement plans in the group's second-quarter earnings report, which is scheduled for release on Thursday.

Last week, sources said that Seven & i is considering selling a stake in its supermarket division, while reports said the company is considering selling a stake in its Seven Bank to strengthen its acquisition defenses. Over the past five years, Seven & i has been under pressure from foreign investors such as ValueAct Capital and Artisan Partners to divest non-core businesses and focus on convenience store operations.

In August, Artisan called on Seven & i to seriously consider Couche-Tard's offer and "as soon as possible" to solicit bids for the company's Japanese subsidiary. ValueAct said in April that it supported Seven & i's plan announced that month to spin off its supermarket business and voted in favor of board appointments. Since the Canadian company initially proposed the acquisition in August, ValueAct has not commented.