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In
a letter dated Friday and sent to journalists, Artisan portfolio
managers N. David Samra and Benjamin L. Herrick recommended that
Seven & i, operator of the 7-Eleven convenience store chain in
Japan, seriously consider ACT's offer, and to solicit offers for
the company's Japanese subsidiaries "as quickly as possible."
"ACT is uniquely positioned to enhance (Seven & i's) corporate
value," Samra and Herrick wrote.
"Negotiating with ACT is the best tactic to preserve positive
stakeholder outcomes in Japan," they said. "It is imperative
that the board of directors negotiate with ACT immediately to
achieve the best possible outcome for shareholders."
Artisan's letter, which was highly critical of Seven & i's track
record of enhancing corporate value, highlights the pressure on
the company from shareholders over the potential deal, which
would likely be the biggest-ever overseas buyout of a Japanese
firm.
ACT, which is the owner of Circle-K convenience stores, last
week said it had approached Seven & i about a possible
acquisition, without disclosing a potential deal value.
Artisan has been a critic of Seven & i's management and
structure since 2019, when the letter says it became a
shareholder. It said it is an active - not activist -
shareholder, which engages with corporate management and boards.
(Reporting by Rocky Swift; Writing by Kevin Buckland; Editing by
Stephen Coates)
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