Canadian c-store operator Couche-Tard has submitted a bid to buy US-based Casey’s General Stores for US$1.9bn.
The all-cash proposal represents a 14% premium on Casey’s closing price of $31.59 a share on Thursday, the firm said today (9 April).
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The proposal also puts a value of about $1.3m on each Casey’s store and includes Casey’s net debt of around $29m.
Couche-Tard said it believes its proposal is “compelling” for Casey’s shareholders.
“We are hopeful that Casey’s board of directors and management team will realise the compelling opportunities this transaction offers, as well as the benefits for all of Casey’s constituencies,” said Alain Bouchard, president and CEO of Couche-Tard.
“Indeed, it is our strong preference to work cooperatively with them and to immediately begin discussions to negotiate a mutually acceptable transaction. We are committed to pursuing this transaction and are prepared to take all necessary steps to make this combination a reality.”
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By GlobalDataIn a letter to the board of directors of Casey’s, the firm said its senior management team and legal and financial advisors have already completed “extensive analysis and due diligence” of Casey’s based on publicly available information.
“We are prepared to proceed expeditiously and, with your cooperation, believe we can be in position to execute a definitive agreement within two to three weeks,” Bouchard said.
Casey’s could not be immediately reached for comment.
