By Rocky Swift and Kevin Buckland
TOKYO (Reuters) – Artisan Partners, a U.S. investment fund, has increased pressure on Seven and i Holdings in Japan, urging the board to provide an update on a takeover bid from Canada’s Alimentation Couche-Tard (ACT) by Sept. 19.
In a letter dated Friday and released to the media, Artisan portfolio managers N. David Samra and Benjamin L. Herrick advised Seven & i, the operator of the 7-Eleven chain in Japan, to seriously consider ACT’s offer and to seek offers for its Japanese subsidiaries promptly.
“ACT is in a unique position to enhance the corporate value of Seven & i,” wrote Samra and Herrick.
“Negotiating with ACT is the most strategic approach to ensure positive outcomes for stakeholders in Japan,” they added. “It is crucial for the board of directors to engage in negotiations with ACT immediately to achieve the best possible results for shareholders.”
Artisan’s letter, which criticized Seven & i’s track record in enhancing corporate value, underscores the pressure from shareholders on the potential deal, which could be the largest overseas acquisition of a Japanese company ever.
ACT, the owner of Circle-K convenience stores, recently disclosed that it had approached Seven & i regarding a potential acquisition, without specifying a deal value.
Artisan has been critical of Seven & i’s management and structure since 2019, when it became a shareholder. The letter clarifies that Artisan is an active shareholder, engaging with corporate management and boards. (This story has been corrected to fix the spelling of ‘alimentation,’ in paragraph 1)