Wishing to generate value for its shareholders, the operator of 7-Eleven convenience stores is reorganizing its organizational structure so that its convenience store chain is isolated from the other activities of the Japanese group.
The management of Seven & ia indicated on Thursday that it wanted to create an entity to bring together its food supermarket activities, specialized stores and other activities not linked to the operation of its convenience stores with a view to possible registration in Scholarship of this new unit.
The Japanese company explains that this decision is taken to “maximize” the value of the company for its shareholders.
This initiative is announced as Alimentation Couche-Tard wishes to acquire the company.
Seven & i revealed earlier this week that it had received a revised purchase offer from Couche-Tard, without specifying the details.
Seven & i said at the beginning of September that it had received an offer of US$14.86 per share, for a valuation of nearly US$40 billion (CAN54 billion), specifying that it had rejected it.
The new offer would be 22% higher than the initial proposal, according to information obtained by the Bloomberg agency. It would amount to US$18.19 per share (47 billion US or 64 billion Canadian) and would have been sent to Seven & i on September 19.
Couche-Tard’s acquisition of Seven & i would double the size of the Laval-based company and create the largest owner and operator of convenience stores in the highly fragmented U.S. market.
Couche-Tard’s market shares in the United States are estimated by analysts at TD and BMO at 4 or 5%, and those of 7-Eleven at around 8%. The combined share would therefore be 12 to 13%.
Seven & i Holdings operates five times as many stores as Couche-Tard, with nearly 86,000 locations worldwide. Annual revenue from Couche-Tard’s network of 17,000 stores is approximately C$95 billion, similar to that of Seven & i Holdings.
Couche-Tard has abandoned acquisition plans in the past if, for example, the price to pay was not suitable. There were notably the cases of the Australian company Caltex, in 2020, and the American chain Casey’s General Stores around fifteen years ago.
Three years ago, Couche-Tard also attempted to buy the French grocer Carrefour, a project which was stopped by the French government.
Seven&ia management also indicated on Thursday that it will hold an investor and analyst day in two weeks, on October 24.