Parkland to sell Canadian propane business for $84 mln amid investor pressure

Parkland

05/06/2024 22:49

June 5 (Reuters) - Canadian fuel distributor Parkland
 PKI.TO  said on Wednesday it would sell its Canadian commercial
propane business to Avenir Energy for about C$115 million
($84.00 million) in cash amid a push by investors for a
strategic review of the company.
    Parkland would also exclusively supply fuel to Avenir for 10
years as part of the agreement, the company added.
    "This transaction is a big step toward achieving our target
of C$500 million from the divestment of non-core assets by the
end of 2025," said Ian White, president of Parkland Canada.
    Parkland's largest shareholder Simpson Oil, which holds a
19.7% stake, had called for a review of strategic alternatives
for the company in April, including a sale.
    Later in the same month, activist investor Engine Capital
backed Simpson Oil's call.
    Engine Capital did not immediately respond to a request for
comment.

($1 = 1.3690 Canadian dollars)

 (Reporting by Sourasis Bose in Bengaluru; Editing by Vijay
Kishore)
 ((Sourasis.Bose@thomsonreuters.com;))