A Canadian company’s buyout proposal to take over 7-Eleven has been rejected by the chain’s Japanese owner.
A statement released by Seven & i Holdings Co. chairman of the board, Stephen Dacus, addressed the preliminary bid proposed by Quebec-based Alimentation Couche-Tard Inc (ACT).
ACT/Screenshot
In August, ACT said it aimed to “achieve a mutually acceptable transaction that benefits customers, employees, franchisees and to the shareholders of both companies.”
However, in his letter, Dacus said ACT’s proposal “grossly undervalues” the company’s worth.
Dacus revealed further that ACT had offered all outstanding shares of Seven & i for US$14.86 per share in cash.
He added that after a thorough review and discussion, the company’s committee felt the proposal was not in the “best interest” of shareholders or other stakeholders.
“We are open to engaging in sincere discussions should you put forth a proposal that fully recognizes our standalone intrinsic value and addresses our concerns regarding certainty of closing in the current regulatory environment,” stated Dacus.
He added that the company’s board believed that even if ACT could improve the value of its proposal, it wouldn’t acknowledge “multiple and significant” challenges the transaction would face from competition law agencies in the US.
The Japanese company says it currently owns 85,000 7-Eleven stores across the world and employs over 157,000 people.
ACT owns the Circle K and Ingo brands and has over 16,700 convenience store and gas station locations in 31 countries.
Daily Hive has reached out to ACT for further comment.