Convenience chain Casey’s rejects updated takeover bid from rival Couche-Tard

Convenience chain rejects latest Couche-Tard bid

ANKENY, Iowa — Convenience chain Casey’s General Stores Inc. has rejected the latest takeover bid from competitor Alimentation Couche-Tard Inc. and announced a recapitalization plan to increase shareholders’ value.

Couche-Tard, a convenience store operator based in Canada, has made two offers for the Midwest chain.

Casey’s rejected a $36-per-share offer in June. The company said Wednesday that its board unanimously recommends against the latest $36.75 offer as it undervalues the company and is not in its best interests.

Casey’s said its $500 million recapitalization plan allows the company to repurchase a substantial portion of its shares by including a modified “Dutch auction,” under which shareholders can choose to tender shares at prices from $38 to $40. The offer will be funded by a combination of debt and cash.

Casey’s estimates it will be able to repurchase approximately 25 percent of its 50.97 million outstanding shares. The offer is to begin on Thursday and end Aug. 25.

Couche-Tard said it was disappointed that Casey’s board rejected the offer and launched its recapitalization plan without consulting Couche-Tard.

Couche-Tard CEO Alain Bouchard said his company will continue to evaluate its options.

Shares of Casey’s rose $1.28, more than 3 percent, to $37.78 by midmorning.