Seven & I Holdings' expertise in food procurement and retail sales, along with the board’s commitment to maximize long-term shareholder value, is the right strategy for the retailer, the company’s directors said in a letter responding to activist fund ValueAct Capital Management.
The memo, released on Tuesday and the second in as many weeks, is part of an ongoing debate between the Japanese retailer and its investor, which said in a 150-page presentation earlier on Tuesday that Seven & I’s management has failed to deliver shareholder value, embrace corporate governance and restructure the business.
The public back-and-forth is likely to continue through May 25, when Seven & I is scheduled to hold its annual general meeting. ValueAct has proposed new board members with a mandate to pick a new president to replace Ryuichi Isaka. The Tokyo-based retailer has called on shareholders to back Isaka and its nominees, saying that the investor’s proposals will damage its competitiveness.