Casey’s rejects $1.9 billion takeover offer by Couche-Tard

Casey’s rejects acquisition offer by Couche-Tard

ANKENY, Iowa — Casey’s General Stores Inc. said Friday that it has rejected a takeover offer by convenience store operator Alimentation Couche-Tard Inc.

Couche-Tard’s offer, valued at $1.9 billion, included the acquisition of all of its shares at $36 per share and the assumption of its $29 million in debt.

The offer represented a 14 percent premium over Casey’s closing price of $31.59 on Thursday.

Couche-Tard is headquartered in Canada but has more than 3,500 stores across the U.S. such as Circle K.

Casey’s, a chain of convenience stores based in Iowa, said its board unanimously decided in March that the proposal was not in the best interests of the corporation and alerted Couche-Tard.

Couche-Tard declined to comment on the refusal.

In a letter sent to Couche-Tard’s leaders on Friday, Casey’s said it was “very disappointed that (the company) decided to launch a hostile public campaign regarding your unsolicited proposal to acquire Casey’s”.

Casey’s said the proposal significantly undervalues its business, which consistently outperforms its peers and has a number of growth initiatives under way. Casey’s also owns nearly all of its properties.

Casey’s also said Couche-Tard is trying to buy U.S. companies on the cheap.

Shares of Casey’s rose $6.92, nearly 22 percent, to $38.51 in midmorning trading.