ValueAct Capital, which owns 4.4% of 7-Eleven’s parent company Seven & i Holdings, called on the company to explain its corporate strategy and why it is not spinning off its 7-Eleven c-stores or thinking about selling the whole company.
“We have been unable to establish confidence in the management or governance of Seven & i,” ValueAct wrote in a letter to the company’s board dated April 2, adding recent communication heightened concern about “entrenchment,” according to a Reuters report.
However, last month, Seven & i signaled a “continuation of its status quo conglomerate structure,” which confused and disappointed markets, the letter said.
Now ValueAct wants answers to nine key questions when the company reports earnings in April, including which strategic alternatives were considered and why the company has not pushed ahead with a tax-free spin-off of 7-Eleven, and why the company is not putting itself up for sale.
The Reuters report also stated that the spin-off of 7-Eleven could be completed through a listing on the Tokyo Stock Exchange in roughly a year, ValueAct said earlier.
No further information has been released since a representative for Seven & i declined to comment, and a representative for ValueAct declined further comment beyond the letter, Reuters reported.
Based in Irving, Texas, 7-Eleven operates, franchises and/or licenses more than 13,000 stores in the U.S. and Canada. In addition to 7-Eleven stores, 7-Eleven Inc. operates and franchises Speedway, Stripes, Laredo Taco Co. and Raise the Roost Chicken and Biscuits locations. It is known for its iconic brands such as Slurpee, Big Bite and Big Gulp.