Why Casey’s General Stores Inc. rejected 7-Eleven revised of...

Why Casey’s General Stores Inc. rejected 7-Eleven revised offer?

Casey’s General Stores Inc (CASY), the operator of over 1,500 stores convenience stores in the U.S. Midwest, rejected a $43-a-share offer by 7-Eleven Inc. Casey board decided 7-Eleven’s revised offer did not reflect its full value and growth opportunities and wasn’t in the best interest of shareholders.

Goldman, Sachs & Co. is acting as financial adviser to Casey’s, and Cravath, Swaine & Moore LLP and Ahlers & Cooney, PC are providing legal advice.

In early September, the Japanese-owned convenience store behemoth made a late, non-binding offer to buy Casey’s for $2.03 billion, or $40 a share, trumping Canada’s Alimentation Couche-Tard’s (ATDb.TO) final offer of $38.50 a share.

7-Eleven, the biggest U.S. convenience-store chain, said its last offer fairly valued Casey’s. The unit of Tokyo-based Seven & I Holdings Co. will keep seeking transactions to expand in the U.S. and Canada, Chief Executive Officer Joe DePinto said in a statement today.

Casey’s General Stores, Inc. (“Casey’s”) (NASDAQ: CASY) today announced that following discussions with 7-Eleven, Inc. (“7-Eleven”) regarding a potential transaction, Casey’s received a revised proposal from 7-Eleven of $43.00 per common share in cash.

The Casey’s Board of Directors, in consultation with its financial and other advisors, carefully considered the revised proposal and unanimously determined that the revised proposal does not reflect the value of Casey’s and its significant growth opportunities, and is not in the best interests of Casey’s, its shareholders, and other constituencies. Given that Casey’s and 7-Eleven have been unable to reach mutually agreeable terms, the companies are no longer in discussions.

Megan Batchelor

Megan BatchelorVerified account

Executive features editor at CEOWORLD Magazine
Executive features editor at The CEOWORLD magazine and lover of reality TV.I eat cereal for breakfast, lunch and dinner.
Megan Batchelor

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Executive features editor at The CEOWORLD magazine and lover of reality TV. I eat cereal for breakfast, lunch and dinner.