US c-store retailer Casey’s General Stores today (8 June) went on the front foot in its takeover battle with Couche-Tard, defended its record and attacked its Canadian suitor.
Casey’s, which is looking to fight off a “highly opportunistic” US$1.9bn bid from Couche-Tard, said the offer did not “fully compensate” its shareholders for the potential synergies a deal could create.
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The Casey’s board questioned whether Couche-Tard would even be able to raise the finance for the bid.
“After two months, Couche-Tard still has not secured committed financing and will be forced to drum up the majority of the financing necessary – approximately $1.3bn – to complete its offer during a time of extreme volatility,” the board told shareholders.
Casey’s attack, which also included claimed Couche-Tard had been “intentionally selective” in citing previous deals to demonstrate the apparent value of its own offer, came just a day after the Canadian firm confirmed it would nominate nine candidates for election to the US firm’s board.
Couche-Tard’s plans for Casey’s AGM in September are designed to put pressure on the US retailer’s board.
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By GlobalDataHowever, Casey’s board insisted it could give investors “greater value” than the $36-a-share bid from Couche-Tard.
Casey’s said its average same-store sales growth had outpaced the average seen in the convenience sector. The retailer said it was continuing to expand its business while growing its share price.
Casey’s president and CEO Robert Myers said the company’s investors would “reap far greater value” from its strategy.
“Our board’s position is clear – shareholders should reject Couche-Tard’s offer and not tender their shares. We believe this is a self-serving and transparent attempt by Couche-Tard to take significant value that rightly belongs to Casey’s shareholders,” Myers added.
