Japanese 7-Eleven convenience store chain operator turns down Couche-Tard takeover offer
The parent company of the Japanese 7-Eleven convenience store chain is turning down a takeover offer from Alimentation Couche-Tard of Canada
TOKYO — The parent company of the Japanese 7-Eleven convenience store chain said Friday that it’s turning down a takeover offer from Alimentation Couche-Tard Inc. of Canada.
In a letter made public, Stephen Dacus, who heads a special committee of outsiders examining the proposed takeover, received last month, said the committee carefully reviewed the offer to acquire all outstanding shares of Seven & i Holdings Co. for $14.86 per share in cash.
That calculates to about $38.6 billion, or 5.5 trillion yen at the current exchange rate.
The Seven & i share price was gradually falling over several months earlier this year, until it surged over the news of the takeover. It traded at 2,133.5 yen ($14.92) on the Tokyo Stock Exchange Friday, down 1.4%.
“After a thorough review and discussion of your proposal, the Seven & i board has unanimously concluded, based on the unanimous recommendation of the special committee, that the proposal is not in the best interest of Seven & i shareholders and other stakeholders,” Dacus wrote.
The offer greatly undervalues the potential of the convenience store business, while not fully addressing U.S. regulatory concerns, he said.
Couche-Tard did not immediately respond. Last month, it confirmed it made a “friendly, non-binding proposal” to Seven & i, “focused on reaching a mutually agreeable transaction that benefits both companies’ customers, employees, franchisees and shareholders.”
It said at that time it wouldn’t make further statements on the discussions “unless or until” an agreement was reached.
What happens next is unclear. Couche-Tard may make
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