U.S. fund Artisan Partners Asset Management has intensified its pressure on Japan’s Seven & i Holdings, urging the board to provide an update on a takeover bid from Canada’s Alimentation Couche-Tard (ACT) by September 19. In a letter dated Friday, Artisan portfolio managers N. David Samra and Benjamin L. Herrick recommended that Seven & i, the operator of the 7-Eleven convenience store chain, take ACT’s offer seriously and swiftly solicit offers for its Japanese subsidiaries.
Artisan Partners emphasized that ACT, the owner of Circle-K convenience stores, is uniquely positioned to enhance the corporate value of Seven & i. “Negotiating with ACT is the best tactic to preserve positive stakeholder outcomes in Japan,” Samra and Herrick wrote, underscoring the importance of immediate negotiations to secure the best possible outcome for shareholders.
Despite repeated attempts to contact Seven & i, the company did not respond, as it typically refrains from commenting on individual shareholders. Artisan’s letter is the latest sign of increasing pressure on the Japanese retailer from shareholders, who are keenly interested in the potential deal, which could become the largest-ever overseas buyout of a Japanese firm.
Last week, ACT revealed it had approached Seven & i regarding a possible acquisition, though it did not disclose the potential value of the deal. Artisan, a shareholder in Seven & i since 2019, has been critical of the company’s management and structure, advocating for improved corporate value and better shareholder engagement. Although Artisan describes itself as an active, not activist, shareholder, its involvement highlights growing shareholder frustration over the lack of communication regarding the potential acquisition.
Artisan set the September 19 deadline based on the public disclosure of the bid on August 19, when Seven & i confirmed that ACT had proposed buying all outstanding shares. ACT characterized its approach as a “friendly proposal” aimed at reaching a mutually beneficial transaction. However, Artisan expressed concern over Seven & i’s lack of official communication and rumors that the company may be seeking a special designation to hinder the takeover.
Bloomberg News reported that Seven & i might seek designation as a “core” company in Japan, requiring the finance ministry to investigate any entity aiming to acquire more than 10% of its shares. Artisan warned that such a move would contradict the Japanese government’s recent efforts to improve corporate governance, which has been instrumental in attracting foreign investment and boosting the local stock market.
Artisan concluded by stating that shareholders deserve a fair and independent process, free from government intervention, which would signal Japan’s commitment to globally competitive measures that enhance asset efficiency. Artisan Partners holds 0.85% of Seven & i’s outstanding shares, according to LSEG data.
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