Casey’s ends takeover talks with 7-Eleven

TORONTO (BestGrowthStock) – Casey’s General Stores Inc (CASY.O: ) rejected a $43-a-share offer by 7-Eleven and ended talks with the convenience store operator owned by Japan’s Seven & I Holdings (3382.T: ).

Shares of Casey’s, which operates over 1,500 stores in the U.S. Midwest, dropped 5 percent after it said the revised offer did not reflect its full value and growth opportunities.

In early September, the Japanese-owned convenience store behemoth made a late, non-binding offer to buy Casey’s for $2.03 billion, or $40 per share, trumping Canada’s Alimentation Couche-Tard’s (ATDb.TO: ) final offer of $38.50 a share.

Couche-Tard abandoned its hostile takeover bid for Casey’s on September 30, nearly half a year after it made its initial offer.

7-Eleven, which operates, franchises or license over 8,200 stores in North America, said in a statement that it believed its revised offer fairly valued Casey’s. The Japanese company said it was pushing ahead with other growth plans and expected to add over 300 stores this year in the United States and Canada.

Separately, Casey’s said it would buy up to 44 Kabredlo’s convenience store locations to expand its presence in Nebraska and Kansas.

It said it expected the deal to add to earnings in the first year of operations

The 44 stores include 22 in Nebraska, 21 in Kansas and 1 in Oklahoma, Casey’s said, adding that all of the locations will be converted to Casey’s General Stores.

For the year ended June 30, these stores generated annual revenue of about $52 million and sold about 36 million gallons of fuel.

Casey’s shares were down about 5 percent at $39.45 in pre-market trade on Wednesday. They closed at $41.45 on Tuesday on Nasdaq.

The company’s shares have dropped 2 percent in value since Couche-Tard abandoned its bid.

(Reporting by Solarina Ho and Isheeta Sanghi in Bangalore)

Casey’s ends takeover talks with 7-Eleven