7-Eleven parent’s shares plunge over 12% as management buyout falls through [Video]

Shares of Japan’s Seven & i Holdings plunged as much as 12.44% Thursday after the company said the founding family had failed to secure the financing needed to buyout the convenience store operator.

This translates to a loss in market cap of about over $5 billion.

Earlier on Thursday, Yomuiri newspaper reported that Seven & i had abandoned the management buyout plan, stated to be worth over 8 trillion yen ($53.69 billion).

“They [the founding family] have been unable to secure the financing required to submit a definitive proposal to acquire 7&i. As a result, there is no actionable proposal from Mr. Junro Ito and Ito-Kogyo for 7&i to consider at this time,” the company said in a filing.

Junro Itois Seven & i’s vice president …