7-Eleven's parent company rejects takeover proposal, says offer ‘grossly undervalues' company

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Even if the offer was raised “very significantly,” Seven & i said the bid does not consider the “multiple and significant…

The company said the proposal was"opportunistically timed and grossly undervalues our standalone path and the additional actionable avenues we see to realize and unlock shareholder value in the near- to medium-term."

In April, Seven & i announced a restructuring plan for the company, aimed at growing 7-Eleven's presence globally as well as divesting its underperforming supermarket business. Artisan Partners is a U.S. fund that holds a stake of just over 1% in Seven & i. In August, the firm hadHerrick explained Artisan asked Seven & i to consider the offer because the fund feels that capital allocation overseas has been overlooked.

"You have more than 50,000 stores, or about 50,000 stores that are generating about $100 million or just over $100 million of operating profit for for the company. So I think there's a big mismatch there," he said.

 

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