CONSUMER STAPLES: Couche-Tard: pushes on
(ATDBCN: Baa1/BBB+)
(SVELEV; Baa2/A)
Emailed statement (bbg) o/n: "We have identified a potential divestiture portfolio of US stores. In collaboration with Seven & i, and to provide further assurance, Couche-Tard is having exploratory discussions with third parties to identify potential acquirers."
- This matches 7-11's statement earlier in the week that divestments to satisfy regulators (i.e. US FTC) was being investigated together.
- Founder Alain Bouchard alongside management will head back to Tokyo next week. Planned news conference for 13th March (bbg).
This situation remains live, even with Seven and i divesting $5.4b of assets this week, supply can be significant. If it only eyes the US business (which seven and i wants to spin-off) then we are looking at ~70% of group sales or ~55% of EBITDA. Keeping in mind the last bid for whole business was $47b, if we take a conservative $25b (equity value) for US only we could be looking at -1x lower spike on leverage (mid to high 4x) on a full debt funded deal.