The seven and the holdings of Japan under pressure to negotiate the purchase with the Couche-Tard of Canada-Firspostpos

A great shareholder in the Seven & I Holdings of Japan is urging the company to get more seriously involved with the Canadian retailer Food Couche-tard on its purchase proposal of $ 47.5 billion.

Artisan Partners Asset Management, which has approximately 1 percent of participations in Seven & I and Couche-tard, criticized the management of the Japanese company offer in a letter to its board on Sunday (March 9).

The United States headquarters expressed concerns about possible conflicts of interest and questioned whether the Board is prioritizing the value of shareholders.

“The Board has made several decisions that leave significant questions without an answer,” wrote the portfolio managers N. David Samra and Benjamin L. Herrick, according to a report from
Bloomberg. They argued that Seven & I has failed to follow the best path for the company.

Continuous monitoring about the purchase offer

Couche-tard, which operates the convenience stores Circle K and the service stations, made an offer last year to acquire the 7-eleven parent company for $ 18.19 per share. Seven & i Until now the offer has resisted, opting for a corporate review to increase the value of shareholders.

Last week, the company announced a series of important changes, including the sale of its Superstore business for $ 5.4 billion, a shares of shares of $ 13.4 billion, and plans to list its business in the United States. Stephen Dacus, a current director of the Board, was also appointed new executive director.

The artisanal partners questioned the role of Dacus in the negotiations, highlighting their position as president of the special committee that reviewed the offer of Couche-tard and at the same time served in the Nomination Committee that considered its own appointment as CEO. The investor argued that the basic norms of corporate governance should have required them to resign both committees.

“Shareholders cannot trust that the Special Committee has executed, nor continues to be executed, an exhaustive evaluation process,” said Artisan, warning that he can vote against Dacus and other members of the Board at the next annual meeting of the company.

Following steps in acquisition conversations

Both companies have said that they are working on a possible divestment of US stores to address antitrust concerns if an acquisition progresses. However, investor skepticism remains high, with the shares of Seven & i that quote more than 20 percent below the supply price of Couche-Tard.

Artisan Partners renewed his call to Seven & I to seriously consider the agreement, arguing that the company has had a lower performance in North America and could benefit from the Couche-Tard management experience.

Bloomberg news He informed that Couche-tard has not yet signed a non-dissemination agreement that would allow him to review the Finance of Seven & I, an essential step before making a formal binding offer.

Couche-tard executives, including Founder and President Alain Bouchard, are expected to travel to Tokyo this week to promote new negotiations. They also plan to hold a press conference on March 13 to publicly present their case to acquire Seven & I.