Couche-Tard, the Canadian convenience store operator, has taken its takeover bid for US rival Casey’s General Stores direct to the company’s shareholders.
Today’s (2 June) move, made for US$36 a share, values Casey’s at $1.9bn and is at the same level as Couche-Tard’s previous bid, which was tabled in April and rejected by the US firm’s management.
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Couche-Tard, the fourth-largest c-store operator in North America, went public with its bid for Casey’s two months after the US group turned down its first, behind-closed-doors approach. Couche-Tard has said it first approached Casey’s management last autumn.
“It remains our strong preference to enter into a negotiated transaction with Casey’s and it is unfortunate that the Casey’s board has rejected our $36 per share all-cash offer without any discussion or negotiation,” said Couche-Tard president and CEO Alain Bouchard.
“We are committed to making this combination a reality and, to that end, are taking our offer directly to the shareholders of Casey’s. We are confident that the shareholders of Casey’s will recognise the seriousness of our interest and send a strong message to the Casey’s board that they should sit down with us immediately to negotiate a mutually acceptable transaction.”
Couche-Tard also sent a warning to the Casey’s board that it would nominate nine independent directors for election at the US firm’s AGM in September – if talks between the two sides do not begin.
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