Japanese retailer Seven & I Holdings Co, facing pressure from activist investors for structural reforms, has nominated a former executive of Uber Technologies Inc to join its board of directors, the company said.
The operator of the 7-Eleven chain of convenience stores has named Elizabeth Miin Meyerdirk, a founding member of Uber Eats, who will join as a new outside director, pending approval from shareholders at a May 26 annual meeting.
Facing a shrinking domestic market, the company said this month that it would seek growth overseas, particularly in North America, and would also expand online shopping and delivery services in Japan.
Seven & I said this month it would revamp the board to ensure a majority came from outside the company, bringing in management skills to guide growth outside Japan.
U.S.-based activist fund ValueAct Capital, which holds a stake of 4.4%, has been urging it to shake up the board and sell off underperforming assets.
Seven & I could more than double its share price by focusing on its convenience stores, the fund has said.
Reform Business Portfolio
Seven & i recently said it would continue reforms of its business portfolio, and that it had hired a financial adviser to conduct a strategic review of its Sogo & Seibu department store unit.
ValueAct, which holds a 4.4% stake, had urged the company to sell off Sogo & Seibu, saying in February that Seven & i could more than double its share price by focusing on its convenience stores.
News by Reuters, additional reporting by ESM – your source for the latest retail news. Click subscribe to sign up to ESM: European Supermarket Magazine.
