According to a Reuters report, another major shareholder in Seven & i Holdings is pushing the company to spin off its 7-Eleven convenience store chain and wants new directors on the board as investor frustration with its conglomerate structure intensifies.
“We think the company should spin off 7-Eleven and that this could help close the valuation discount,” Artisan Partners Associate Portfolio Manager Ben Herrick told Reuters.
Artisan Partners has owned shares in Seven & i since 2019 and currently owns 1% of the company, valued at $38 million.
Artisan Partners’ 7-Eleven spin off push came shortly after ValueAct started questioning Seven & i corporate strategy.
The report also stated that investors, including Artisan Partners, ValueAct and a domestic institutional investor contacted by Reuters that is not permitted to discuss its views publicly, are blaming Seven & i’s stagnant share price on management’s attachment to a conglomerate structure.
These investors just want board members who can hold management accountable for not pushing the spin off or selling the entire company.
No more information has been reported on the matter.
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.
