Canada fuel retailer Parkland's top shareholder vows to protect rights after AGM move

Parkland

04/03/2024 03:51

March 3 (Reuters) - Parkland Corp's  PKI.TO  biggest
shareholder Simpson Oil on Sunday said it will evaluate options
to protect its rights after the Canadian fuel retailer advanced
its annual meeting, limiting the shareholder's ability to
nominate directors.
    Simpson Oil, which holds about a 19.7% stake in Parkland,
had agreed in December to waive its rights to nominate new
directors until March 31. Last week, Parkland announced plans to
hold its annual general meeting (AGM) on March 28.
    "For the past 10 years, Parkland has held its AGM in the
month of May. Simpson Oil waived its rights under the Nomination
Agreement on 31 December 2023 in the expectation that it would
be able to exercise its shareholder rights free from any
restrictions at Parkland's 2024 AGM," Simpson Oil said in a
statement.
    The rift between Calgary-based Parkland and its biggest
shareholder came to a head in December when Simpson's nominees
Marc Halley and Michael Christiansen exited Parkland's board
abruptly and Simpson signed an agreement with Parkland the same
day, which prohibits the oil company from making any public
statements against Parkland.
    Parkland did not respond to a Reuters request for comment.
    Parkland is already facing pressure from activist investor
Engine Capital which warned the Canadian company in January not
to pursue "wasteful litigation with its shareholders" and urged
the company to appoint independent board directors.
    Engine had said at the time that it was concerned about the
departures of Halley and Christiansen after being directors for
eight months. The U.S.-based activist Engine had earlier urged
Parkland to divest assets.
    Simpson Oil said following the 2024 annual general meeting
and the termination of the nomination agreement, it "will
evaluate and consider its ability to fully exercise and protect
its shareholder rights."
    Parkland is one of Canada's largest fuel retailer with a
market value of about $5.53 billion.
        

 (Reporting by Utkarsh Shetti in Bengaluru;Editing by Dhanya Ann
Thoppil)
 ((UtkarshUmesh.Shetti@thomsonreuters.com;))