Simpson Oil calls for strategic review at Parkland

Parkland

13/04/2024 24:37

April 12 (Reuters) - Simpson Oil, the biggest
shareholder of Parkland Corp  PKI.TO , on Friday sent a letter
to the board of the Canadian fuel retailer, urging it to
immediately start a review of strategic alternatives including a
potential transition of the company to new ownership.
    Simpson Oil said it would be open to participating in a
transaction that would provide Parkland shareholders with the
opportunity to exchange their shares for shares of another
operator.
    Calgary-based Parkland did not immediately respond to a
request for comment.
    Simpson Oil, which holds a 19.7% stake in Parkland, had
agreed in December to waive its rights to nominate new directors
until March 31.
    Simpson Oil had said last month that it will evaluate
options to protect its rights after Parkland advanced its annual
meeting, limiting the shareholder's ability to nominate
directors.
    In January, activist investor Engine Capital had asked for 
refreshment of Parkland's board saying it was concerned about
the recent departures from Parkland's board of Simpson Oil
designees Marc Halley and Michael Christiansen, after being
directors for eight months.
    The reasons for the departures were unclear, but Engine's
letter said a Simpson press release earlier in January signaled
that Parkland's single-largest shareholder was concerned about
the board's commitment to corporate governance and prioritizing
shareholders' interests.    

 (Reporting by Roshia Sabu in Bengaluru; Editing by Maju Samuel)
 ((Roshia.Sabu@thomsonreuters.com;))