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Couche-Tard, owner of Circle-K convenience stores, last week
sounded out Seven & i about a possible acquisition, a deal that
would be the biggest ever overseas buyout of a Japanese company.
A potential deal value hasn't been disclosed and there's no
guarantee a transaction will happen.
Artisan has been a critic of Seven & i's management and
structure since 2019, and fund manager Ben Herrick said the
board should negotiate with Couche-Tard while the offer remains
friendly to increase the chances of a positive outcome for
stakeholders.
Herrick declined comment on whether his fund has been in contact
with Seven & i management. Seven & i representatives did not
immediately respond to a request for comment on the views
expressed by Herrick.
"The most important part of this deal, for both the reputation
of the board and for corporate Japan, is that shareholders
receive a fair, independently managed process," Herrick,
associate portfolio manager of Artisan's International Value
team, said in an e-mailed response to questions from Reuters.
"The outcome of this process has potentially historic
implications," he added.
U.S.-based Artisan holds 0.85% of Seven & i's outstanding
shares, according to LSEG data. Bloomberg News earlier reported
on the fund's views on the bid.
Artisan, as well as other activist investors Third Point and
ValueAct Capital, have criticized Seven & i, which operates the
global 7-Eleven convenience store chain, for low returns and
poor corporate governance.
Herrick said Artisan's efforts have help bring about an
independent board and chairman at Seven & i that can hold the
company's management accountable and "realize the value of this
world-class asset".
"We did not arrive at this juncture because corporate oversight
and capital allocation were best in class," he wrote.
(Reporting by Rocky Swift; editing by Miral Fahmy)
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