March 1st, 2024

Activist investor calls for board overhaul at Parkland Corp. in wake of resignations

By The Canadian Press on January 22, 2024.

An activist investor says Parkland Corp. needs a complete board overhaul following the recent resignations of two board members. A boat travels past the Parkland Burnaby Refinery on Burrard Inlet at sunset in Burnaby, B.C., Saturday, April 17, 2021. THE CANADIAN PRESS/Darryl Dyck

CALGARY – An activist investor says Parkland Corp. needs a complete board overhaul following the recent resignations of two board members.

New York-based activist investor Engine Capital LP said in a letter released publicly Monday that it doesn’t believe Parkland’s current board should be responsible for its own refreshment process.

Engine said Parkland should collaborate instead with its largest shareholders to reconstitute the board with directors who will “prioritize the interests of all shareholders.”

Engine Capital has been making intermittent demands for change at Parkland since last March, when it urged the company to sell or spin off its Burnaby, B.C. refinery and become a pure play fuel and convenience retailer.

Its latest criticism comes just weeks after the resignation of two members of Parkland’s board, both of whom had been nominees of Simpson Oil, Parkland’s largest shareholder.

No reason for the resignations was provided, but Engine said Monday it wants Parkland to start working with its largest shareholders rather than treating them like adversaries.

This report by The Canadian Press was first published Jan. 22, 2024.

Companies in this story: (TSX:PKI)

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