Investing
Exclusive-ValueAct seeks to oust four directors of Seven & i
© Reuters. FILE PHOTO: Seven & i Holdings Co’s Seven Eleven convenience store logo is pictured in Tokyo, Japan January 12, 2017. REUTERS/Kim Kyung-Hoon
By Svea Herbst-Bayliss
(Reuters) – ValueAct Capital informed Seven & i Holdings on Friday it would lobby to remove four directors from the Japanese’s convenience store operator’s 14-member board, citing “a failed corporate strategy.”
ValueAct, which owns a 4.4% stake of Seven & i, had called on the company’s management in January to spin-off of its 7-Eleven convenience store chain.
In a letter reviewed by Reuters, the hedge fund said it had become frustrated that its engagement with Seven & i over several months had not led to the company adopting a strategy to grow faster and improve profitability and its market valuation.
A “conglomerate discount has persisted” because the management of most of the Seven & i businesses has repeatedly failed in spite of promises for “synergies” and structural reform, the letter said.
The letter did not state how ValueAct will seek to oust the four directors, whom it did not publicly identify.
Seven & i declined to comment.
A tax-free spin-off of 7-Eleven could be completed through a listing on the Tokyo Stock Exchange in roughly a year, ValueAct said in January.
Seven & i announced earlier this month it will close an additional 14 Ito-Yokado supermarket stores in Japan and fully exit its apparel business as part of its structural reform plan.
ValueAct, which is led by Mason Morfit, won a board seat earlier this year at cloud computing company Salesforce (NYSE:).
Six new directors joined Seven & i’s board last year. ValueAct supported those newcomers at the time.
ValueAct blames the four directors for “governance failures”, the letter said.
The directors “failed to disclose a reported acquisition proposal to the Company in 2020”, failed to conduct an objective succession review, and did not conduct an independent strategic review in line with governance best practices, ValueAct said.
Read the full article here
-
Side Hustles5 days ago
3 Steps You Can’t Miss When Growing Your Business
-
Side Hustles7 days ago
Protect Your Business With AdGuard VPN’s Powerful Security Features
-
Passive Income7 days ago
This Minimalist Lamp Lets You Pick From 16 Million+ Lighting Colors for Maximum Productivity
-
Make Money6 days ago
15 Jobs That Will Shrink the Fastest Over the Next Decade
-
Side Hustles6 days ago
How to Maximize Your Profits With This Annual 8-Step Checklist
-
Passive Income6 days ago
Why Email Marketing Is Still Your Business’s Most Powerful Tool
-
Side Hustles6 days ago
Want to Start a Business? Consider Buying One Instead — Here’s Why.
-
Investing5 days ago
Germany stocks lower at close of trade; DAX down 0.65% By Investing.com