May 22nd, 2024

Engine Capital backs Simpson Oil’s call for strategic review at Parkland

By The Canadian Press on April 17, 2024.

An activist investor has sent at letter to the board of directors at Parkland Corp. backing a call for a strategic review at company by the fuel retailer's largest shareholder. Drivers line up at a Pioneer gas station in Carleton Place, Ont., on Saturday, Nov. 8, 2008. THE CANADIAN PRESS/Sean Kilpatrick

CALGARY – An activist investor has sent a letter to the board of directors at Parkland Corp. backing a call from the company’s largest shareholder for a strategic review at the fuel retailer.

U.S.-based Engine Capital LP says it supports a request by Simpson Oil Ltd. asking that Parkland conduct a review of strategic alternatives including a possible sale of the company.

Parkland has said the review is unnecessary and does not consider the best interests of the majority of its shareholders.

Simpson owns about 20 per cent of Parkland’s shares, while Engine Capital holds about 2.5 per cent.

Last year, Engine Capital urged Parkland to sell or spin off what it called “non-core assets” and become a pure-play fuel and convenience retailer.

While Parkland rejected that suggestion, the company has made other changes including putting a number of other assets, such as certain retail locations, up for sale and making changes to its board.

This report by The Canadian Press was first published April 17, 2024.

Companies in this story: (TSX:PKI)

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