CoucheTard lifts buyout offer by 22, sources say
Seven i shares jump but remain below new offer price
Earning report due on Thursday, focus on asset divestment plans
TOKYO, Oct 9 Reuters Canada39;s Alimentation CoucheTard ACT has made a revised bid for Seven i Holdings, the Japanese company said on Wednesday, which two people familiar with the matter said hiked the offer by 22 to about 47 billion.
If it were to go ahead, the deal for the 7Eleven owner would be the largest ever overseas buyout of a Japanese firm.
The sources spoke on condition of anonymity because information about the price has not been made public.
Bloomberg first reported the new proposal of 18.19 per share, which is up from CoucheTard39;s previous rejected offer of 14.86 per share, or about 38.5 billion.
Seven i said in a statement that the new proposal was private and nonbinding and it planned to keep the negotiations confidential as requested by CoucheTard.
CoucheTard, the owner of CircleK convenience stores, declined to comment.
The increased offer from ACT is far more compelling than the original proposal. Whilst regulatory hurdles remain, the Seven i board should engage to see if the deal can be progressed, said Manoj Jain, cofounder and coCIO of Hong Kongbased Maso Capital.
Shares of Seven i surged nearly 12 on the news before paring gains to finish the day up 4.7 at 2,335 yen 15.7, indicating some doubt among investors that a deal will happen.
Seven i last month said that…