Written by Rocky Swift and Kevin Buckland
TOKYO (Reuters) – U.S. asset manager Artisan Partners has stepped up pressure on its holdings in Japanese companies Seven and Ai, asking its board to provide an update on a takeover bid by Canada’s Alimation Couture by Sept. 19.
In a letter dated Friday and sent to reporters, Artisan portfolio managers N. David Samra and Benjamin L. Herrick recommended that Seven & I, the operator of the 7-Eleven convenience store chain in Japan, seriously consider ACT’s offer and solicit bids for the company’s Japanese subsidiaries “as soon as possible.”
“ACT is uniquely positioned to enhance Seven & i’s corporate value,” Samra and Herrick wrote.
“Negotiating with ACT is the best tactic to maintain positive outcomes for stakeholders in Japan,” they said. “It is imperative that the board negotiate with ACT immediately to achieve the best possible outcome for shareholders.”
The letter from Artisan, which has been highly critical of Seven&i’s record of boosting corporate value, highlights the pressure the company is under from shareholders over the potential deal, which is likely to be the largest overseas acquisition ever by a Japanese company.
ACT, the company that owns Circle-K stores, said last week that it had approached Seven & i about a potential acquisition, without disclosing the value of the potential deal.
Artisan has been critical of Seven & i’s management and structure since 2019, when the letter said it had become a shareholder. It said it was an active shareholder — not an activist — and engaged with the company’s management and boards.
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