Seven & i Holdings Reportedly to Push Back on Couche-Tard's Bid Price
TOKYO — Seven & i Holdings Co. Ltd. will write to Alimentation Couche-Tard Inc. to inform the convenience store retailer that its proposed acquisition price is too low, reported Nikkei Asia. The parent company to 7-Eleven Inc. also has concerns regarding competition law.
Couche-Tard's preliminary, nonbinding takeover proposal offered just under $15 per share in cash to acquire all shares, for a total purchase price of around $40 billion, according to a source familiar with the potential deal.
[Read more: What Would a Couche-Tard & 7-Eleven Tie Up Mean for the Industry?]
After setting up a committee to scrutinize the takeover proposal, headed by Stephen Hayes Dacus, chairman of Seven & i's board of directors, the board reportedly decided to send its response letter to Laval, Quebec-based Couche-Tard as soon as Friday, Sept. 6. The letter will reportedly request that Couche-Tard review its offer, including the total purchase price, as the board considers the proposed price to be less than its true corporate value.
The letter will state that the proposal does not serve the best interests of Seven & i stakeholders, and that Couche-Tard has not presented sufficient evidence and materials for productive discussions, according to the source. It will also suggest that the proposal does not adequately account for United States laws regarding competition.
Since receiving Couche-Tard's offer, Seven & i's outside directors have met multiple times to discuss whether the proposal appropriately assessed the company's corporate value and whether it will support its long-term growth. Discussions regarding a possible takeover are expected to continue, the news outlet reported.
Couche-Tard previously stated that it is focused on reaching a mutually agreeable transaction that benefits both organizations' customers, employees, franchisees and shareholders. There can be no certainty at this stage that any agreement or transaction will be reached, according to the company, which does not expect to issue further public statements unless or until an agreement is reached.
Alimentation Couche-Tard is the No. 2 retailer on the 2024 Convenience Store News Top 100 report. 7-Eleven Inc. is No. 1.