U.S. fund Artisan Partners Asset Management APAM.N increased pressure on the stakes of Japan’s Seven and i 3382.T, asking the board to provide an update on a takeover offer from Canada’s Alimentation Couche-Tard (ACT) ATD.TO by Sept. 19.
In a letter dated Friday and sent to reporters, Artisan portfolio managers N. David Samra and Benjamin L. Herrick recommended that Seven & i, operator of the 7-Eleven convenience store chain in Japan, seriously consider ACT’s offer and solicit bids for the company’s Japanese subsidiaries “as soon as possible.”
“ACT is uniquely positioned to enhance (Seven & i’s) corporate value,” Samra and Herrick wrote.
“Negotiating with ACT is the best tactic to preserve positive shareholder outcomes in Japan,” they said. “It is imperative that the board negotiate with ACT immediately to achieve the best possible outcome for shareholders.”
Artisan’s letter, which is highly critical of Seven & i’s track record in enhancing corporate value, highlights pressure on the company from shareholders over the potential deal, which would likely be the largest overseas acquisition of a Japanese company.
ACT, which owns Circle-K convenience stores, said last week it had approached Seven & i about a possible acquisition, without disclosing the potential value of the deal.
Artisan has been critical of Seven & i’s management and structure since 2019, when he became a shareholder, according to the letter. He says he is an active, not activist, shareholder who interacts with the company’s management and boards.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.