Article 1 of 2 The logo of Seven & i of Japan is seen at its 7-Eleven convenience store in Tokyo, Japan, August 19, 2024. REUTERS/Kim Kyung-Hoon/File Photo
Artisan has been criticizing Seven & i’s management and structure since 2019. The company stated that it is an active – not activist – shareholder that engages in dialogue with the company’s management and boards of directors.
Fund manager Ben Herrick said Seven & i’s board should negotiate with Couche-Tard while the offer is still friendly to increase the chances of a positive outcome for shareholders.
Herrick declined to comment on whether his fund had been in contact with Seven & i’s management. Seven & i, operator of the global convenience store chain 7-Eleven, said it does not comment on individual shareholder information.
“The most important aspect of this deal – both for the board’s reputation and for the Japanese economy – is that shareholders receive a fair, independently managed process,” Herrick, deputy portfolio manager on Artisan’s International Value team, said in an emailed response to questions from Reuters.
“The outcome of this trial may have historic implications,” Herrick said.
US-based fund Artisan holds 0.85 percent of Seven & i’s outstanding shares, according to LSEG data. Bloomberg News had previously reported on the fund’s views on the offer.
Artisan, as well as activist investors Third Point and ValueAct Capital, criticized Seven & i for low returns and questioned the company’s management.
Herrick said Artisan’s efforts helped create an independent board and chairman at Seven & i who can hold management accountable and “recognize the value of this world-class asset.”
“We didn’t get to this point because corporate oversight and capital allocation were second to none,” he said.
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Reporting by Rocky Swift; Editing by Miral Fahmy and Christopher Cushing
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