Trading was briefly halted in the stock post the deal being called off. The stock fell after resumption.
Couche-Tard, the operator of convenience stores, said that it is pulling its takeover bid for Seven & i, citing a “persistent lack of good faith engagement.”
Seven & i’s operator expressed disappointment that the decision taken by Couche-Tard was a “unilateral” one and it disagreed with many of the “inaccurate statements” made by the Canadian company.
A deal made in August last year, which valued Seven & i at $14.86 per share, was rejected by the store chain operator, saying it “grossly undervalued” them. Couche-Tard later revised the offer higher in October by over 22%, according to reports, to $18.19 per share, valuing Seven & i at 7 Trillion Japanese Yen or $47 billion.
“As we have expressed many times, we do believe that fully combining our two companies is the most straightforward and effective way to maximize value to all stakeholders,” Couche-Tard said. “However, we are not able to effectively pursue this combination without deeper and genuine further engagement from 7&i leadership and the special committee.”
Seven & i shares are currently trading 8% lower.
