Latest news with #StephenDacus
Yahoo
21-07-2025
- Business
- Yahoo
Couche-Tard放棄460億美元收購計畫，Seven & i上半場股價重挫7.38%
【財訊快報／劉敏夫】外電報導指出，加拿大便利商店巨頭Alimentation Couche-Tard放棄對日本7-Eleven便利店營運商Seven & i Holdings Co約6.77兆日圓（458億美元）的收購案，稱Seven & i Holdings在近一年的磋商過程中拒絕進行有意義的接觸。Couche-Tard在週三晚間寫給Seven & i董事會的一封信中表示，與7&i的代表在公開場合所發表的言論相反，7&i並未進行任何真誠或建設性的接觸。相反的，7&i採取了有意混淆和拖延的策略，嚴重損害了7&i及其股東的利益。 Seven & i股價在週四股價走低，上半場結束時下跌7.38%。Seven & i Holdings一直試圖證明自身獨立存在的合理性，並做出了一系列重大調整，包括任命Stephen Dacus為首席執行長、以54億美元出售旗下綜合超市業務、提出2兆日圓的股票回購計畫，以及計畫將其美國業務獨立上市。 Seven & i在聲明中表示，對Couche-Tard選擇放棄感到失望，並稱Couche-Tard的信中存在「許多誤導性描述」。Seven & i還表示，將堅定不移地推動公司的獨立價值創造計畫，並將加快提升核心業務。
Forbes
18-07-2025
- Business
- Forbes
Couche-Tard Walking Away From Seven & I Deal May Not Be End Of Story
Couche-Tard has walked away from its bid for 7-Eleven's owner. (Photo by) Japanese 7-Eleven owner Seven & i Holdings Co. could yet remain a buyout target if the convenience store group fails in its business turnaround after dramatically seeing off Alimentation Couche-Tard Inc.'s $45.8 billion takeover approach. The deal, which would have been the biggest ever foreign takeover of a Japanese company, ended in acrimony as Canada's Couche-Tard issued a 1,500-word missive to Seven & i's founding Ito family claiming they had never been open to talks and that the board had carried out a 'calculated campaign of obfuscation and delay.' And newly appointed Seven & i CEO Stephen Dacus will now have to convince investors that reforms proposed by his management team can deliver, especially in North America and Japan. The CEO is due to give an update on its turnaround in August. But it looks like he will have a job on his hands to convince investors. While Seven & i shares have climbed since Couche-Tard's interest became public in August 2024, they are down around 13% since the proposal was withdrawn this week and are off about a fifth in the year to date. Earlier this week Alimentation Couche-Tard flounced away from its pursuit as the global convenience store and fuel operator cited a 'lack of constructive engagement'. In a highly unusual step Alex Miller, President and CEO of Alimentation Couche-Tard, and Alain Bouchard, Founder and Executive Chairman, wrote in a letter to the Japanese company's board: "There has been no sincere or constructive engagement from 7&i that would facilitate the advancement of any proposal, contrary to comments made publicly by 7&i representatives. Rather, you have engaged in a calculated campaign of obfuscation and delay, to the great detriment of 7&i and its shareholders.' Among other things, Couche-Tard claimed that documents it received from Seven & i lacked important information and that executives had failed to show up at meetings. Seven & i Rebuts Claims Seven & i said in a rebuttal that it was disappointed by Couche-Tard's decision, claiming the Couche-Tard letter contained 'numerous inaccurate statements' and maintained that its special committee had taken part in 'sincere and constructive discussions.' In May, things looked very different. Couche-Tard and Seven & i had entered into a nondisclosure agreement to advance discussions and began looking for potential buyers for their overlapping U.S. convenience stores in a move to mitigate antitrust concerns. In its letter, Couche-Tard maintained there was a 'a clear path to U.S. regulatory approval.' For Seven & I's part, further investor-friendly efforts will be tough to enact, given that it has already taken major steps to overhaul the business and is set to sell off some retail operations in a $5.4 billion deal that will close September. It is also taking steps to bolster its shares with a five-year, circa $13.5 million buyback. But so far that has failed to move the dial, especially as some of the funding was due to come from an initial public offering of the U.S. business. Couche-Tard's exit has raised questions over that plan. Seven & i Looks To Reform However, should leave Seven & i clear to pursue growth and profitability in its convenience stores business, which investors have been pushing for. Indeed, Seven & i has previously reformed after external pressure. In 2016, concerns raised by activist fund Third Point over executive appointments resulted in the exit of former chairman Toshifumi Suzuki. Seven & i Holdings could yet be a takeover target. (Photo by Kazuhiro NOGI / AFP) (Photo by KAZUHIRO ... More NOGI/AFP via Getty Images) And ValueAct Capital Management's campaign led to Seven & i selling its Sogo and Seibu Co. department stores to Fortress Investment Group in 2022 for $1.7 billion, although it failed to oust then CEO Ryuichi Isak. For Seven & i, while operating profit for the March-thru-May rose 9.7% year-on-year to $438 million, it was the second-lowest quarterly result in the past decade and domestic same-store sales remained flat, while revenue remained weak in the U.S. While Couche-Tard may have stepped away, its decision to make its views public could potentially attract other bidders or activist investors, or prompt the resurrection of a management buyout by Seven & i's founding Ito family. The underperfroming share price also makes Seven & i a prime candidate to be taken private. Indeed, while Couche-Tard has placed the blame squarely on Seven & i's management, some analysts have argued that the failure of the deal was simply because the offer from was not big enough to counter Seven & i's opposition.
Japan Times
18-07-2025
- Business
- Japan Times
Seven & I risks becoming buyout target again if turnaround fails
Seven & I Holdings remains a buyout target in the eyes of some investors, who say new suitors may emerge unless the operator of 7-Eleven convenience stores turns around its business after fending off Alimentation Couche-Tard's unsolicited ¥6.77 trillion ($45.8 billion) takeover approach. "If the stock price drops significantly, there might be a possibility of tender offers or hostile takeovers,' said Takamasa Ikeda, senior portfolio manager at GCI Asset Management, an investor in Japanese stocks. While Seven & I shares are higher than they were before Couche-Tard's interest became public in August 2024, they fell after the proposal was withdrawn this week and are down by more than a fifth this year. Newly appointed CEO Stephen Dacus is under pressure to convince stakeholders that sweeping reforms will deliver, especially in the U.S. and Japan, where inflation and weak demand are weighing on profits. Seven & I is taking steps to bolster its shares with a five-year, ¥2 trillion buyback. So far, that hasn't done much, with the stock down about 7.8% since the repurchase was announced March 6. Some of the funding for that was due to come from an initial public offering of the U.S. business, but Couche-Tard's exit has raised doubts over whether that plan will remain intact. Further investor-friendly efforts will be harder to enact, given that Seven & I has already taken drastic steps to overhaul the business, according to Taku Sugawara, an analyst at Iwai Cosmo Securities. The operator of 7-Eleven stores is on track to sell off its less-profitable retail operations in a deal that will close in September, part of the package of sweeping changes announced since Couche-Tard's approach. The campaign, which if successful would have been the biggest foreign takeover of a Japanese company, ended in acrimony. In a 1,500-word missive, Couche-Tard said Seven & I's founding Ito family had never been open to talks and blamed the board for a "calculated campaign of obfuscation and delay.' Seven & I responded by saying it was disappointed by Couche-Tard's decision to walk away, and disagreed with what it called "numerous mischaracterizations' in the letter. The remaining path for Seven & I is to pursue greater growth and profitability in the convenience stores business, which investors have been clamoring for. Two years ago, activist fund ValueAct Capital Management pushed for this strategy and unsuccessfully sought to replace Ryuichi Isaka, the prior CEO. One issue is Seven & I's underlying performance. While operating profit for the March-May period rose 9.7% year-on-year to ¥65.1 billion, it was the second-lowest quarterly result in the past decade. Domestic same-store sales remained almost flat, lagging behind competitors. The U.S. operations squeezed out profits thanks to cost-cutting measures, but revenue remains weak. "We are closely watching how far Mr. Dacus can go in supporting and managing improvements in performance,' said Takahiro Kazahaya, a senior analyst at UBS Securities. The CEO is due to give an update on its turnaround strategy in August, with a focus on how he plans to improve the core convenience stores business. Seven & I has a long history of enacting reforms under external pressure. In 2016, concerns raised by activist fund Third Point over executive appointments resulted in the exit of former Chairman Toshifumi Suzuki and Isaka's appointment. ValueAct's pressure campaign helped fuel Seven & I's decision to sell its Sogo & Seibu department stores to Fortress Investment Group in 2022 for ¥250 billion. The latest reforms were accelerated by Couche-Tard's approach, according to Kazahaya. While Couche-Tard may have stepped away, its decision to provide a detailed explanation in a long letter may tempt other potential bidders, activist investors, or even rivals, to join the fray. One investor pointed out that the Canadian operator of Circle K stores could have issued a one-line statement, but chose instead to disclose details of its discussions with Seven & I, including the amount of the termination fee ($1.2 billion) and alternate merger scenarios that were discussed. Artisan Partners Asset Management was especially vocal during Couche-Tard's campaign, pressing the company to engage more deeply with the Canadian retailer. In a letter sent to the company's directors in March, the U.S. investment firm cited concerns around potential conflicts of interest and the board's "failure to pursue the path that offers the best future for the company and maximizes value.' Another possibility is the resurrection of a management buyout by Seven & I's founding Ito family. A ¥9 trillion proposal to take the retailer private imploded in March after the buyout group, which included Itochu, failed to secure financing. The lackluster share price also makes Seven & I a prime candidate to be taken private by insiders.
Business Times
18-07-2025
- Business
- Business Times
Seven & i risks becoming buyout target again if turnaround fails
[TOKYO] Even after fending off Alimentation Couche-Tard's unsolicited 6.77 trillion yen (S$58.5 billion) takeover approach, Seven & i Holdings remains a buyout target in the eyes of some investors, who say new suitors may emerge unless the operator of 7-Eleven convenience stores turns around its business. 'If the stock price drops significantly, there might be a possibility of tender offers or hostile takeovers,' said Takamasa Ikeda, senior portfolio manager at GCI Asset Management, an investor in Japanese stocks. While Seven & i shares are higher than they were before Couche-Tard's interest became public in August 2024, they fell after the proposal was withdrawn this week and are down by more than a fifth this year. Newly appointed chief executive officer Stephen Dacus is under pressure to convince stakeholders that sweeping reforms will deliver, especially in the US and Japan, where inflation and weak demand are weighing on profits. Seven & i is taking steps to bolster its shares with a five-year, two-trillion-yen share buyback. So far, that has not done much, with the stock down about 7.8 per cent since the repurchase was announced on Mar 6. Some of the funding for that was due to come from an initial public offering of the US business, but Couche-Tard's exit has raised doubts over whether that plan will remain intact. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Further investor-friendly efforts will be harder to enact, given that Seven & i has already taken drastic steps to overhaul the business, according to Taku Sugawara, an analyst at Iwai Cosmo Securities. The operator of 7-Eleven stores is on track to sell its less-profitable retail operations in a deal that will close in September, part of the package of sweeping changes announced since Couche-Tard's approach. 'Obfuscation and delay' The Canadian group's campaign, which if successful would have been the biggest foreign takeover of a Japanese company, ended in acrimony. In a 1,500-word missive, Couche-Tard said Seven & i's founding Ito family had never been open to talks and blamed the board for a 'calculated campaign of obfuscation and delay'. Seven & i responded by saying it was disappointed by Couche-Tard's decision to walk away, and disagreed with what it called 'numerous mischaracterisations' in the letter. The remaining path for Seven & i is to pursue greater growth and profitability in the convenience stores business, which investors have been clamouring for. Two years ago, activist fund ValueAct Capital Management pushed for this strategy and unsuccessfully sought to replace Ryuichi Isaka, the prior CEO. One issue is Seven & i's underlying performance. While operating profit for the March-to-May period rose 9.7 per cent year on year to 65.1 billion yen, it was the second-lowest quarterly result in the past decade. Domestic same-store sales remained almost flat, lagging behind competitors. The US operations squeezed out profits thanks to cost-cutting measures, but revenue remains weak. 'We are closely watching how far Mr Dacus can go in supporting and managing improvements in performance,' said Takahiro Kazahaya, a senior analyst at UBS Securities. The CEO is due to give an update on Seven & i's turnaround strategy in August, with a focus on how he plans to improve the core convenience store business. Giving in Seven & i has a long history of enacting reforms under external pressure. In 2016, concerns raised by activist fund Third Point over executive appointments resulted in the exit of former chairman Toshifumi Suzuki and Isaka's appointment. ValueAct's pressure campaign helped fuel Seven & i's decision to sell its Sogo & Seibu department stores to Fortress Investment Group in 2022 for 250 billion yen. The latest reforms were accelerated by Couche-Tard's approach, according to Kazahaya. While Couche-Tard may have stepped away from the deal, its decision to provide a detailed explanation in a long letter may tempt other potential bidders, activist investors, or even rivals, to join the fray. One investor pointed out that the Canadian operator of Circle K stores could have issued a one-line statement, but chose instead to disclose details of its discussions with Seven & i, including the amount of the termination fee – US$1.2 billion – and alternate merger scenarios that were discussed. Artisan Partners Asset Management was especially vocal during Couche-Tard's campaign, pressing the company to engage more deeply with the Canadian retailer. In a letter sent to the company's directors in March, the US investment firm cited concerns around potential conflicts of interest and the board's 'failure to pursue the path that offers the best future for the company and maximises value'. Another possibility is the resurrection of a management buyout by Seven & i's founding Ito family. A nine-trillion-yen proposal to take the retailer private imploded in March after the buyout group, which included Itochu, failed to secure financing. The lacklustre share price also makes Seven & i a prime candidate to be taken private by insiders. BLOOMBERG
UPI
17-07-2025
- Business
- UPI
Couche-Tard withdraws proposal to acquire 7-eleven parent
Canadian retailer Couche-Tard Inc has announced its withdrawal from its buyout proposal to acquire Seven and I Holdings Co for $47 billion on by Gary I Rothstein/UPI... | License Photo July 17 (UPI) -- Canadian retailer Couche-Tard Inc. announced Thursday it has withdrawn its buyout proposal to acquire Seven and I Holdings Co. for $47 billion on Thursday. The two companies had initially signed a nondisclosure agreement that Seven & I would engage "constructively" with Couche-Tard to determine whether the proposal would be agreed on, in April. "Since entering into the NDA, there has been no sincere or constructive engagement from Seven & i that would facilitate the advancement of any proposal, contrary to comments made publicly by Seven & i representatives, including in the July 11, 2025 earnings call in which Seven & i noted it is "seriously" considering our proposal," Couche-Tard said in a letter to the Board of Directors of Seven and & I Holdings Co. "Based on this persistent lack of good faith engagement, we are withdrawing our proposal," Couche-Tard said. Seven & I rejected the statement that it has not engaged in constructive talks, according to a press release. "Our company will continue to implement measures on its own to create value," the company said. In 2024, Seven & I rejected a buyout bid from Couche-Tard for $14.86 per share, in August. Couche-Tard raised the offer in October to 18.19 per share. During a major restructuring at Seven & I Holdings in May, Stephen Dacus became the new President and CEO.
