- The Japanese owner of 7-Eleven, Seven & i Holdings (PINL:SVNDF) has rejected a takeover offer from Canadian company Alimentation Couche-Tard Inc. (TSX:ATD)
- Via an official statement, Seven & i Holdings’ chair, special committee and chairman of the board, Stephen Dacus, explained that “[T]he proposal ‘grossly’ undervalued the company’s intrinsic value and opportunities to unlock that value”
- The Québec-based convenience store operator had submitted a friendly, non-binding proposal to Seven & i Holdings last month valued at a potential equivalent of US$31 billion
- Alimentation Couche-Tard Inc. last traded at C$75.41 per share
The Japanese owner of 7-Eleven, Seven & i Holdings (PINL:SVNDF) has rejected a takeover offer from Canadian company Alimentation Couche-Tard Inc. (TSX:ATD).
Via an official statement, Seven & i Holdings’ chair, special committee and chairman of the board, Stephen Dacus explained that “[T]he proposal ‘grossly’ undervalued the company’s intrinsic value and opportunities to unlock that value.”
“First, the special committee believes that your proposal is opportunistically timed and grossly undervalues our standalone path and the additional actionable avenues we see to realize and unlock shareholder value in the near- to medium-term,” Dacus said. “The Seven & i business is a unique asset and strategically positioned within the global convenience store sector. The board is confident that it can realize and unlock shareholder value through a number of strategic actions, including but not limited to our U.S. business, that we are actively pursuing.”
He added that while the team believes that the proposal did “not adequately acknowledge the multiple and significant challenges such a transaction would face from U.S. competition law enforcement agencies in the current regulatory environment,” it is “open to sincerely consider any proposal that is in the best interests of Seven & i shareholders and other stakeholders.”
The Québec-based convenience store operator had submitted a friendly, non-binding proposal to Seven & i Holdings back in August.
The deal was valued at a potential equivalent of US$31 billion via media reports, and 7-Eleven reached peak revenue last year of US$5.5 billion, according to Zippia.
Alimentation Couche-Tard Inc. operates in 31 countries and territories, with more than 16,700 stores, of which approximately 13,100 offer road transportation fuel. With its well-known Couche-Tard and Circle K banners, it is one of the largest independent convenience store operators in the United States.
Alimentation Couche-Tard Inc. (TSX:ATD) last traded at C$75.41 per share and has risen 5.38 per cent since this time last year.
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(Top image: Alimentation Couche-Tard Inc.)
