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Activist Investor Pushes for Tax-Free 7-Eleven Spinoff

Activist investor ValueAct Capital sent an open letter to Seven & I Holdings asking the company to spin off 7-Eleven as its own company. ValueAct is pushing for a re-evaluation of the company and a restructuring that would create a “global champion 7-Eleven company.”

The activist investor owns a 4.4% stake in the retailer and has been pushing for change since 2020. It also is seeking the replacement of four board members at Seven & I’s upcoming annual meeting, and has posed a number of questions for the retailer, including:

  • Which strategic alternatives were quantitatively considered?
  • Why not pursue a tax-free spinoff of 7-Eleven?
  • Why not pursue a sale of the whole company?

“Shareholders have been asking for an objective review of the Company’s conglomerate structure due to its poor corporate value creation and operating underperformance for many years,” said ValueAct in a statement. “After extensive dialogue over the years ValueAct has been unable to establish confidence in the management, their strategy, or the governance of the company.”

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