Couche-Tard has some competition in its quest to acquire Casey’s General Stores Inc.
Casey’s announced that it has received a preliminary proposal from a strategic third party regarding a consensual transaction at $40 per share in cash.
Casey’s General Stores Inc.’s Board of Directors today, Sept. 7, unanimously recommended against Alimentation Couche-Tard Inc.’s revised tender offer to acquire Casey’s for $38.50 per common share, saying it substantially undervalues Casey’s, and is not in the best interests of Casey’s, its shareholders and other constituencies.
The Board also reviewed the proposal from the unnamed third party and determined that it as well substantially undervalues Casey’s. While the Board firmly believes that Casey’s value substantially exceeds $40 per share, it has authorized discussions with the third party to explore whether a transaction can be reached that reflects the true value of Casey’s and is in the best interests of Casey’s, its shareholders and other constituencies. The company noted that there can be no assurances that a transaction will be reached and that it is under no legal obligation to provide an update on the discussions with the third party.