(Bloomberg) — Canadian convenience store and gas station operator Alimentation Couche-Tard Inc. said it could increase its offer to acquire long-time rival Seven & i Holdings Co., but only if the latter engages in takeover talks.
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“We may be able to enhance our proposal through due diligence access to financials,” Couche-Tard’s founder and Chairman Alain Bouchard said at a press conference in Tokyo on Thursday. He was joined by Chief Executive Officer Alex Miller and Chief Financial Officer Filipe Da Silva in Japan’s capital to promote their multi-billion dollar bid to purchase the parent company of the 7-Eleven stores — an unusual move for the retailer.
Couche-Tard, which owns the Circle K brand, submitted a new, yen-denominated non-binding proposal on Jan. 24. Based on its previously indicated price of $18.19 per share and exchange rate at the time, the Canadian company is offering to buy Seven & i for ¥7.39 trillion ($50 billion).
But Bouchard expressed disappointment at the lack of engagement with Seven & i’s so far. “We have tried to have meetings. It’s hard. Actually, it’s not possible,” he said.
Couche-Tard is on a publicity blitz as it steps up what company executives call a “friendly” pursuit of Seven & i.
It launched a new website to make clear to Japanese and stakeholders that a hostile takeover isn’t under consideration. “We remain confident that our proposal is the most attractive for Seven & i, its customers, franchisees, and the shareholders of both companies,” it said.
Ever since Couche-Tard’s approach became public in August, the operator of 7-Eleven stores has sought to make a case for remaining independent. Seven & i last week announced sweeping changes, including board director Stephen Dacus taking over as chief executive officer, the sale of its superstore business for $5.4 billion, a share buyback program worth ¥2 trillion and a listing of its US business.
But success has been mixed so far, with Seven & i’s shares still trading more than 20% below Couche-Tard’s offer.
This week, Seven & i said it presented several steps to address any regulatory hurdles, namely the divestment of more than 2,000 stores, to be agreed upon before any potential deal. Those include finding a buyer for all of Couche-Tard’s Circle K stores in the US.
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