Shares of Seven & i Holdings experienced a surge of over 10% on Wednesday following a report from Bloomberg News indicating that Alimentation Couche-Tard (ACT) has increased its takeover proposal by more than 20%, valuing the Japanese retailer at $47.1 billion.
The revised offer, priced at $18.19 per share, exceeds ACT’s previous bid for the company, which was submitted last month. Bloomberg cited sources familiar with the negotiations in its report.
Seven & i Holdings stated that it could not comment on the situation while it assessed the accuracy of the report. A representative from Canada’s ACT was not immediately available for comment.
As of 0130 GMT, shares of Seven & i had moderated their gains but were still up 4.7%, trading at 2,335 yen ($15.76).
If the acquisition proceeds, it would mark the largest overseas buyout of a Japanese company to date.
The operator of the 7-Eleven convenience store chain had previously rejected ACT’s initial offer, arguing that it “grossly undervalues” its business.
With quarterly earnings set to be released on Thursday, analysts and investors are keenly awaiting updates on Seven & i’s strategies to enhance corporate value.
In recent reports, sources indicated to Reuters that the company was contemplating selling a stake in its supermarket division, while Bloomberg noted that it was also exploring the possibility of divesting part of its Seven Bank holding.
Seven & i has faced mounting pressure from foreign investors, including ValueAct Capital and Artisan Partners, to optimize its asset allocation strategies.
($1 = 148.1300 yen)
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