Parkland Corp. announced it has entered into an agreement with its largest long-term shareholder Simpson Oil Ltd. The agreement furthers the longstanding and successful relationship between Parkland and Simpson Oil. The agreement provides Simpson Oil, holder of over 19% of the issued and outstanding Parkland shares, the right to designate up to two nominees for election to the board of directors of Parkland and includes customary voting support obligations in favor of the board.
“We appreciate the confidence that Simpson Oil has shown in the Parkland team and the company’s strategic direction,” said Jim Pantelidis, chairman of the board of directors of Parkland. “Since Simpson Oil became our largest shareholder, we have continued to advance our strategy and strengthen our growth platform through prudent acquisitions while increasing our dividend each year. Through this agreement, we have secured our largest shareholders’ ongoing support for our board of directors and management. We look forward to our continued relationship with Simpson Oil and our mutual confidence and commitment to the long-term strategy and future of our business.”
Under the terms of the agreement, two nominees of Simpson Oil will be nominated for election at the company’s upcoming annual and special meeting of shareholders. “The board will be recommending shareholders vote in favor of the nominees’ election at the upcoming shareholder meeting, and we look forward to welcoming them to the board should they be elected,” said Pantelidis.
Additional details on the agreement will be included in the management information circular for the meeting that will be published in the coming days.
As part of the board’s ongoing refreshment process, David Spencer and John Bechtold will not be standing for re-election at the meeting, a decision which has been planned for some time. “I want to thank David and John for their service to the board and their tireless work on behalf of shareholders. Their vision, expertise and guidance have helped us navigate complex challenges and achieve remarkable success,” said Pantelidis.
Separately, the company wishes to acknowledge receipt of a letter from activist Engine Capital LP.
Having purposefully accelerated acquisitions over the past two years, Parkland is focused on delivering value from the integrated business it has built. 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 is an independent supplier and marketer of fuel and petroleum products and a leading convenience store operator. Parkland services customers across Canada, the U.S., the Caribbean region and the Americas through three channels: retail, commercial and wholesale. Parkland optimizes its fuel supply across these three channels by operating and leveraging a growing portfolio of supply relationships and storage infrastructure. Parkland provides trusted and locally relevant fuel brands and convenience store offerings in the communities it serves.