Another Seven & i Holdings Co. Ltd. shareholder is pushing the Tokyo-based company to spin off the 7-Eleven convenience-store chain and wants new directors on the board as investor frustration with its conglomerate structure intensifies, Reuters has reported.
“We think the company should spin off 7-Eleven and that this could help close the valuation discount,” Artisan Partners Associate Portfolio Manager Ben Herrick told the news agency.
Milwaukee-based Artisan Partners holds approximately 1% of the Japanese company, which is valued at $38 billion, said the report.
The move comes on the heels of a push by Seven & i investor ValueAct Capital, San Francisco, which owns a 4.4% stake, to get the global c-store conglomerate to spin off 7-Eleven to increase its valuation. ValueAct is seeking to remove four board members, citing a “failed corporate strategy” and “governance failures” for the proposed board change.
“ValueAct believes that Seven & i is at a pivotal point in its evolution, with a clear opportunity to create a global champion 7-Eleven company,” ValueAct’s latest letter and presentation says.
Artisan partners did not respond to a request for comment by posting time. Seven & i and 7-Eleven have also not responded to requests for comment on the matter.
Another investor, who declined to be identified, told Reuters whether a spinoff is the best option is a matter of debate, the report said.
- 7-Eleven isNo. 1 on CSP’s 2023 Top 40 update to the 2022 Top 202 ranking of U.S. convenience-store chains by store count.
Irving, Texas-based 7-Eleven Inc. operates, franchises or licenses more than 83,000 convenience stores in 19 countries and regions, including about 13,000 in the United States, including about 9,500 under the 7-Eleven banner, around 3,800 under the Speedway banner and about 500 under the Stripes flag, as well as the Laredo Taco Company and Raise the Roost Chicken and Biscuits brands.
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