A major shareholder in Japan’s Seven & i Holdings is urging the company to engage more seriously with Canadian retailer Alimentation Couche-Tard over its $47.5 billion buyout proposal.
Artisan Partners Asset Management, which holds about 1 per cent stakes in both Seven & i and Couche-Tard, criticiced the Japanese company’s handling of the bid in a letter to its board on Sunday (March 9).
The US-based investor raised concerns about potential conflicts of interest and questioned whether the board is prioritising shareholder value.
“The Board has taken several decisions that leave significant unanswered questions,” portfolio managers N. David Samra and Benjamin L. Herrick wrote, according to a report by Bloomberg. They argued that Seven & i has failed to pursue the best path forward for the company.
Ongoing standoff over buyout offer
Couche-Tard, which operates Circle K convenience stores and gas stations, made an offer last year to acquire the parent company of 7-Eleven for $18.19 per share. Seven & i has so far resisted the bid, opting instead for a corporate overhaul to boost shareholder value.
Last week, the company announced a series of major changes, including the sale of its superstore business for $5.4 billion, a $13.4 billion share buyback program, and plans to list its US business. Stephen Dacus, a current board director, was also named the new chief executive.
Artisan Partners questioned Dacus’ role in the negotiations, highlighting his position as chairman of the special committee reviewing Couche-Tard’s offer while also serving on the nomination committee that considered his own appointment as CEO. The investor argued that basic corporate governance standards should have required him to step down from both committees.
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