Seven & i Investor Encourages Competitive Bidding Process
TOKYO — Seven & i Holdings Co. Ltd. investor Artisan Partners encouraged 7-Eleven Inc.'s parent company to consider launching a formal bidding process following the news that it received a potential $58 billion white-knight management buyout offer.
The nonbinding offer from Junro Ito, son of company founder Masatoshi Ito and current vice president and representative director, and his private company Ito-Kogyo Co. Ltd., would take Seven & i private and block a reported $47 billion proposal from Laval, Quebec-based Alimentation Couche-Tard Inc.
Artisan Partners supports both offers at this stage and urges the special committee evaluating them to explore additional third-party interest through a process that could include an auction, reported Reuters.
[Read more: Seven & i Receives $58B Management Buyout Offer]
"Furthermore, we strongly recommend that the board grant both parties equal access to conduct due diligence," said Ben Herrick, Artisan portfolio manager. "Lastly, it is imperative for the board and special committee to act with a sense of urgency without further delay."
Artisan currently holds 1.11% of Seven & i's outstanding shares. It previously urged Seven & i to consider spinning off 7-Eleven Inc. and later to conduct due diligence regarding Couche-Tard's acquisition proposal, as Convenience Store News reported.
Seven & i is reportedly in the beginning stages of conducting limited talks with Couche-Tard, which upped its initial offer from $38.5 billion to $47 billion, according to anonymous sources. Couche-Tard's executive leadership also traveled to Japan in October to make a case for the strength of its offer and ability to maintain the culture and best practices of Seven & i's operations in Japan.
However, there is no guarantee that either proposal will be accepted.
"No determination has been made at this time to pursue a transaction with either Mr. Ito and Ito-Kogyo, ACT, or any other party, and there can be no assurance that any such transaction will be entered into or consummated," Seven & i stated.
7-Eleven Inc. is No. 1 on the 2024 Convenience Store News Top 100 report.