Activist investor ValueAct is seeking to remove four directors from the board of Japan’s Seven & I (OTCPK:SVNDY), the parent company of convenience store chain 7-Eleven.
ValueAct, which owns a 4.4% stake in Seven & I (OTCPK:SVNDY), has become frustrated that its interactions with the company in recent months haven’t led the company to change its strategy, according to a Reuters report, which cited a letter the activist wrote. The activist blames the four directors for “governance failures.”
The push to oust the directors comes after Reuters reported in January ValueAct is pushing Seven & I (OTCPK:SVNDY) holders to back a spin-off of the company’s 7-Eleven convenience store chain. ValueAct believes a tax-free spin-off of 7-Eleven could be done through a listing on the Tokyo Stock Exchange in about a year.
Seven & I (OTCPK:SVNDY) announced earlier this month it plans to shutter its in-house apparel business and close some of its Ito-Yokado stores.
Reuters reported in May 2021 that ValueAct had amassed a $1.5 billion stake in Seven & I (OTCPK:SVNDY) and was pushing the company to pursue changes, including a potential break up.