BOSTON: ValueAct Capital is urging 7-Eleven's owner, Seven & i Holdings, to break up its businesses and focus on the convenience-store chain, steps which it says could more than double the company's share price in the coming years.
ValueAct says that if Seven & i narrows its focus to 7-Eleven, it could become a global champion in a growing industry, and warns that if its attention remains"scattered" its results will be poor for many shareholders. Last month ValueAct first said publicly that Seven & i should explore strategic alternatives and added some pressure to its request by saying that it wanted a public response to its requests soon. It also asked the company to contact the top 30 shareholders and listen to their views.
Since 2007, Seven & i's stock price has been the most sluggish performer, returning only 4.6 per cent, compared with competitors like Alimentation Couche-Tard, which has been the leader in the space, gaining 18.5 per cent.