New York City Canadian convenience store operator Alimentation Couche-Tard said Wednesday it is taking its $36 per-share cash offer for Casey's General Stores directly to shareholders in a tender offer after Casey's rejected its bid in April, the Associated Press reported.
Casey's said in April the bid undervalues the Ankeny, Iowa, company.
The new bid is worth $1.87 billion in total, excluding about $29 million in Casey's debt. Couche-Tard also plans to nominate nine candidates for Casey's board of directors.
In a statement, Couche-Tard CEO Alain Bouchard said it was "unfortunate" that Casey's rejected the offer in April without any discussion or negotiation.
"We continue to believe that a combination of Casey's and Couche-Tard is compelling and would deliver superior value to our respective shareholders, employees, business partners and other constituencies," he added. “We are confident that the shareholders of Casey's will recognize the seriousness of our interest and send a strong message to the Casey's board that they should sit down with us immediately to negotiate a mutually acceptable transaction."
Couche-Tard is one of the largest convenience store operators in North America, operating about 5,700 outlets under the Couche-Tard, Mac's, Circle K, 7-jours, Dairy Mart, Daisy Mart, Beckers and Winks banners. The company is also the master franchise holder for Dunkin' Donuts quick-service restaurants in Quebec. It operates more than 3,500 stores across the United States.
Casey's operates about 1,500 stores.