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Mergers & Acquisitions

Casey’s Sale Speculation Resurfaces

Activist investor rumored to be weighing push to sell c-store chain

NEW YORK -- After a Bloomberg report sent shares of Casey's General Stores Inc. stock rising more than 7% on May 23, activist investor Jana Partners is denying that it has built a small position in Casey’s and is weighing an effort to push the retailer to sell itself, CNBC reported.

The size of the reported stake held by the New York-based hedge fund in the convenience-store operator is below the 5% threshold requiring disclosure to regulators, people familiar with the matter told Bloomberg. The sources asked not to be identified because the matter is private. The sources also said New York-based Jana hasn’t decided whether to push for a sale of the company, and it may still sell off its investment.

Jana, however, denied owning any shares of the company, according to a Tweet from CNBC.

Casey’s did not respond to a CSP Daily News request for comment by posting time.

In January, a group of shareholders of Casey’s issued an open letter to all Casey's shareholders suggesting that the chain is “significantly undervalued” and urging the board to “immediately engage a financial adviser to explore all strategic alternatives, including a potential sale, merger or similar transaction in order to maximize shareholder value.”

JCP Investment Management LLC, BLR Partners LP and Joshua Schechter collectively own about $45 million worth of Casey's General Stores Inc. common stock. Houston-based JCP was instrumental in the sale of The Pantry Inc. to Laval, Quebec-based c-store company Alimentation Couche-Tard Inc. in 2014 and was part of a settlement agreement with San Antonio-based c-store company CST Brands Inc., which resulted in a sale to Couche-Tard in 2016.

With headquarters in Ankeny, Iowa, Casey's owns and operates more than 2,000 c-stores in 15 states.

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