ValueAct seeks dismissal of Seven & i’s president Isaka – letter

NEW YORK: ValueAct Capital is pushing for the dismissal of Seven & i Holdings president Ryuichi Isaka, saying he is responsible for a “flawed strategy” and hoping to replace him at next month’s annual meeting. publicly stated for the first time that he is one of four directors on the board. .

The San Francisco-based investment firm, which owns a 4.4% stake in the convenience store operator, has accused Isaka of acting badly since he took over as president in 2016. increasing the pressure.

In a letter dated April 20 to Seven & i shareholders, ValueAct wrote, “It’s time to find a new president for Seven & i.”

ValueAct said Seven & i recorded a meeting with the team without their consent, violating privacy laws around the world. The investment firm said it later leaked audio from the March 15 meeting to the press.

Seven & i did not immediately respond to a request for comment, and ValueAct declined to comment beyond the content of the letter.

ValueAct has long been critical of the company’s conglomerate structure, calling for a spin-off of the 7-Eleven convenience store chain or a sale of the entire company.

Earlier this week, Seven & i said its board of directors voted to all ValueAct-nominated director nominees, including former RadioShack and Sears executive Dean Rogers and ValueAct’s head of sustainability Brittni Levinson. said he would disagree.

Tensions have escalated for weeks, with many large investors backing ValueAct’s call to explain its corporate structure and answer a series of questions on its earnings call earlier this month.

The company this week called ValueAct’s spinoff proposal “short-sighted” and “based on a superficial understanding” of its business, highlighting various steps the company has taken, including the sale of its department store business.