Canadian c-store retailer Couche-Tard has increased its tender offer to acquire US rival Casey’s General Stores to US$36.75 a share.
The latest bid, announced today (22 July), is an increase from Couche-Tard’s initial offer of $36 a share, which had been repeatedly rejected by Casey’s board.
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The higher offer, which values Casey’s at approximately $28m, including net debt, is Couche-Tard’s latest move in its hostile takeover attempt.
Couche-Tard president and CEO Alain Bouchard said: “Our increased $36.75 per share cash offer is well above the value that Casey’s, on its own and in any reasonable timeframe, could deliver to its shareholders and allows the shareholders of Casey’s to receive a significant cash premium for their investment.”
The Canadian firm also announced plans to file preliminary proxy materials with the Securities and Exchange Commission to nominate a slate of nine independent candidates for election to Casey’s board of directors and to present for a proposal for shareholder action at the US retailer’s AGM in September.
Couche-Tard is also seeking to repeal any new by-laws or amendments to by-laws by the board of directors without shareholder approval after 10 June 2009 and prior to the adoption of this proposal by Casey’s shareholders.
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By GlobalDataThe current tender offer is set to expire on 6 August.
