US fund Artisan urges Seven & i to allow due diligence on Couche-Tard buyout offer (updated)

Artisan Partners Asset Management

16/10/2024 07:04

(Adds details from letter and context)
       TOKYO, Oct 16 (Reuters) - U.S. fund Artisan Partners
urged the board of Seven & i Holdings  3382.T  to allow Canada's
Alimentation Couche-Tard (ACT)  ATD.TO  to conduct due diligence
and negotiate a purchase price in its bid to take over the
Japanese retail company. 
    In a letter dated Oct. 15, Artisan portfolio managers David
Samra and Benjamin Herrick said a restructuring plan announced
by Seven & i last week was "too little, too late".
    "The price currently being offered by ACT is clearly
superior to the speculative value that could potentially be
achieved by implementing the restructuring plan at this late
date," they said in the letter.
     Seven & i was not immediately available for comment.
     At its second-quarter earnings last week, Seven & i
unveiled a plan to bundle some of its vast network of non-core
assets into a holding company for which it will bring in
strategic investors.
    The Canadian company announced a preliminary bid for Seven &
i in August, and sources said last week it has since hiked its
offer by 22% to around $47 billion. If the deal goes ahead, it
would be the largest ever overseas buyout of a Japanese firm.
    Artisan's letter also urged Seven & i to allow ACT access to
conduct due diligence and negotiate a price that maximises value
for shareholders.
    Artisan had previously sent a letter to Seven & i in August
calling on the firm to consider ACT's initial, lower offer as
well as solicit offers for the company's Japanese subsidiaries.
    Artisan holds 1.11% of Seven & i's outstanding shares, LSEG
data showed. 

 (Reporting by Rocky Swift; Editing by Muralikumar Anantharaman)
 ((rocky.swift@thomsonreuters.com;))