ValueAct Capital has disapproved of the answers 7-Eleven’s parent company, Seven & i Holdings, has given regarding key questions about the company’s strategy, building up tension ahead of its annual shareholders meeting, according to a Reuters report.
“Seven & i did not answer any of the nine questions posed by ValueAct in a clear and specific way,” ValueAct told Reuters in a statement after Seven & i independent directors promised to continue reviewing strategic alternatives.
ValueAct recently sent the key questions to Seven & i for the company to explain its corporate strategy. Other questions were also asked, including whether the board recognizes shareholder dissatisfaction with the current conglomerate structure and why it is not spinning off its 7-Eleven c-stores or considering selling the whole company.
Along with its answers being criticized, Seven & i share went down 4% after its profit outlook failed to meet market expectations.
ValueAct also told Reuters that Seven & i communications continue to be vague and confusing. The investor looks forward to providing shareholders the opportunity to vote for new directors who will put the company on a path toward a better future.
However, Seven & i plans to respond to questions from shareholders around mid-April.
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.