[TOKYO, Sept 9 (Reuters)] — Shares of Seven & i Holdings Co. are soaring on the Tokyo Stock Exchange on the 9th. It rose to 2,492.5 yen, up more than 11%, hitting a new high since the start of the year. Bloomberg has reported that interviews with people familiar with the matter have revealed that Canada’s Alimentation Couche-Tard has made a new takeover proposal to Seven & i Holdings for $18.19 (about 2,700 yen) per share, for a total of 7 trillion yen, providing a clue. This is more than 20% higher than the previous proposal of US$14.86 per share. Seven & i’s previous proposal had been unanimously rejected by its board of directors, with the company pointing out that it “significantly undervalued” the company’s value. The proposal, aimed at starting discussions, was sent to Seven & i Holdings on Sept. 19, but no substantive negotiations have taken place since then, Bloomberg reported.
>>3 With Yodobashi gone, the company’s value has increased so they now have an excuse to refuse the acquisition by saying they can’t sell at such a low price.
It all depends on the money. There’s no need to be stubborn. And why be stubborn? Would it be management’s fault? If anything, it would be better for management to sell it quickly and that would be a credit to them.
I can’t imagine that a large company that is no longer in the hands of its owner would jump on board with something like this. There are places like that in Japan. Even Ikebukuro Seibu caused such a fuss, so no matter how much foreign capital is poured in, it’s a mystery.
I wonder what would happen if the slave owner system, which only works in Japan, were to be taken over by foreign capital. They might not be interested in Japan though.
>>27 It depends on the person. If the TOB is expected to go through, it will be a guaranteed stock that will generate profits on sale. If you look at it as just a financial product, you may decide to buy. If the TOB doesn’t go through, the current increase will be wiped out.
I think it would have a lot of impact if an organization like Seven-Eleven were to become foreign-owned. It would no longer be a member of the political and business collusion club it was before, but would instead become a force for external pressure.
I guess it’s about the same as this company’s market capitalization. Are you really interested in buying it? It’s currently 7&i6 trillion, so you’d need about 9 trillion to buy it.
If we judge the company’s value based on the skyrocketing stock price, then the acquisition proposal still undervalues the company’s value! Or something like that is what the stupid board of directors is likely to say.
But convenience stores are now part of our daily infrastructure, so is it really a good idea to hand them over to foreign capital in terms of national security?
I think the price is just due to the know-how of Japanese convenience stores. If they took that know-how away, they’d be thrown out and the Japanese convenience store industry would be eaten alive.
Well, in these cases, you might have to offer twice the pre-takeover market capitalization before they’ll buy in, and even that depends on how motivated the other party is. Hostile takeovers are not realistic in Japan.
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