Seven & i Holdings Co Ltd’s eight independent directors said on Thursday the board would continue to review strategic alternatives as the retail giant faces pressure from some shareholders including ValueAct Capital for broader reforms.

“The board will continue to review optimal group structure and strategic alternatives,” including a possible initial public offering or a spin-off, the eight directors said in a statement.

ValueAct, which owns a 4.4 per cent stake in Seven & i and has been pushing for change since 2020, is calling for a spin-off of its 7-Eleven convenience store chain and seeks to replace four board members at an upcoming annual meeting.

Last month, Seven & i announced the results of a strategic review and said it would close an additional 14 Ito-Yokado supermarket stores in Japan and fully exit its apparel business. Some investors, though, said the review did not go far enough.

Seven & i said in a separate statement on Thursday that operating profit rose 30.7 per cent to US$3.85 billion) in the financial year to end-February.

For the financial year that began on March 1, it forecast a 1.3 per cent profit increase.

• Reporting by Makiko Yamazaki; Editing by Shri Navaratnam, of Reuters.