ALIMENTATION Couche-Tard plans to tell Seven & i Holdings that it’s still keen to pursue an acquisition, even after the Japanese convenience store operator rejected its initial proposal, people with knowledge of the matter said.
The Canadian convenience retailer plans to write to Seven & i in the coming days to reiterate its interest in a deal, according to the people. It could signal a willingness to offer a higher price if Seven & i agrees to friendly negotiations, one of the people said.
While Couche-Tard would prefer a friendly agreement, it has not ruled out going directly to Seven & i shareholders with its bid, the people said.
Couche-Tard is working with advisers at it studies its next steps and no final decisions have been taken, the people said, asking not to be identified discussing confidential information.
Representatives for Couche-Tard and Tokyo-based Seven & i didn’t immediately respond to requests for comment outside regular business hours.
Seven & i shares closed at 2133.5 yen (S$19.53) on Friday, giving the company a market value of about 5.6 trillion yen.
Couche-Tard’s initial proposal valued Seven & i at about US$14.86 per share. While Seven & i, the operator of 7-Eleven shops, rejected this as too low and fraught with regulatory risk, it signalled a willingness to consider a sweetened offer.
A deal would create a global convenience store behemoth with more than 100,000 stores and represent the biggest-ever foreign takeover of a Japanese company.
Previously, an attempt at such a transaction would have been dismissed as unlikely, given the protectionist tendencies of Japan’s government and boards prioritising stability over shareholder value. But new corporate guidelines have been issued to inject more vigour into corporate Japan through improved governance and protections for investors. BLOOMBERG
