- Japan’s Seven & i Holdings (PINL:SVNDF) received a revised takeover bid from Alimentation Couche-Tard (TSX:ATD)
- The Circle K owner pushed a new bid of around US$47 billion compared with its earlier US$38.5 billion offer
- The revised bid, if accepted, would mark the largest overseas buyout of a Japanese firm
- Alimentation Couche-Tard Inc. opened trading at C$74.00 per share
Japan’s Seven & i Holdings (PINL:SVNDF) received a revised takeover bid from Alimentation Couche-Tard (TSX:ATD).
The Circle K owner pushed a new bid of around US$47 billion compared with its earlier US$38.5 billion offer.
First reported by Bloomberg, this new proposal, which values the Japanese owner of 7-Eleven owner at US$18.19 per share, represents a significant 22 per cent increase over the initial bid.
The revised bid, if accepted, would mark the largest overseas buyout of a Japanese firm, according to Reuters.
The Québec-based convenience store operator is eager to expand its global footprint through this acquisition. The initial offer was rejected by Seven & i Holdings, which deemed it undervalued the company.
In response to the new bid, shares of Seven & i surged nearly 12 per cent before settling at a 4.7 per cent increase, reflecting investor optimism tempered by some skepticism about the deal’s completion. The Japanese company has emphasized its strategy to enhance corporate value independently, a stance that has been challenged by some of its foreign investors.
As negotiations continue, the market is closely watching for any developments, particularly with Seven & I’s upcoming Q2 earnings report scheduled for early November 2024, which could offer insight into the company’s financial health and direction.
Alimentation Couche-Tard Inc. operates in 31 countries and territories, with more than 16,700 stores, of which approximately 13,100 offer road transportation fuel. With its well-known Couche-Tard and Circle K banners, it is one of the largest independent convenience store operators in the United States.
Alimentation Couche-Tard Inc. (TSX:ATD) opened trading down 0.59 per cent at C$74.00 per share and has risen 2.42 per cent since this time last year, though down 4.65 per cent since the year began.
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(Top photo: Alimentation Couche-Tard Inc.)