Right to designate up to two nominees for election to Pki.to 6:15 AM EDT, 03/23/2023 (MT Newswires) -- Parkland Corp. (PKI.TO), which jumped nearly 10% yesterday, overnight Wednesday said it has struck an agreement providing its largest shareholder Simpson Oil Limited the right to designate up to two nominees for election to Parkland's board.
Simpson Oil, which holds over 19% of Parkland's issued and outstanding shares, will also have customary voting support obligations in favor of the board.
Under the deal terms, two nominees of Simpson Oil will be nominated for election at Parkland's upcoming annual and special meeting of shareholders.
As part of the board's ongoing refreshment process, David Spencer and John Bechtold will not be standing for reelection at the meeting.
Separately, Engine Capital LP, which owns about 2% of Parkland's shares, sent a letter to the company stating that it should become a pure-play fuel and convenience retailer.
Engine Capital in the letter urged Parkland to begin a strategic review and sell off its British Columbia refinery and other assets in order to become a pure-play convenience store and gasoline retailer. Engine Capital said Parkland's shares are underperforming, particularly when compared to global convenience and gasoline retailer Alimentation Couche-Tard (ATD.TO).
In response to the letter, Parkland said it will not speculate on the coincidental timing of Engine Capital's letter in connection with the agreement with Simpson Oil. Parkland said it will continue to actively communicate with all shareholders.
"The company is focused on integrating its recent acquisitions, capturing synergies, lowering leverage, and enhancing shareholder returns. The company is also examining opportunities for dispositions where it creates strong returns for the company's shareholders," Parkland said in a news release.
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