Parkland Corp. recently revealed that Simpson Oil, which owns approximately 19.8% of Parkland’s outstanding shares, is planning to nominate nine independent directors for Parkland’s board. Simpson also urged the board to begin the process of replacing current CEO Bob Espey.
The call comes following Parkland’s March announcement that it had initiated a strategic review of its business to “identify opportunities to maximize value for shareholders.” The company noted that it was evaluating all options, which included potential asset divestments, acquisitions, transformative business combinations or even a sale of the company.
Simpson wrote in a letter to shareholders that “the elements of of Parkland that attracted us in 2019 have been mismanaged out of existence … there is a fundamental obstacle to addressing these problems: Parkland’s entrenched leadership, which consistently prioritizes management interests over those of shareholders.”
Parkland noted that it has welcomed Simpson representatives to rejoin the board several times, and have also invited the representatives to participate on the special committee conducting the strategic review.
“This is a self-interested attempt by Simpson, a minority shareholder, to seize full control of Parkland without paying a control premium,” Parkland wrote in its statement. “… It is disappointing that Simpson have chosen this adversarial approach, despite Parkland’s board and management’s repeated, good faith efforts, to engage constructively and reach a resolution that appropriately recognizes their minority shareholding.”
Of the nine names Simpson recommended to shareholders, two have previously served on the Parkland board — Michael Christiansen and Marc Halley, who departed from the board in January 2024.
“Many members of the Simpson slate lack credibility and relevant experience to meet the standards required to govern a public company of Parkland’s scale and complexity,” said Michael Jennings, chair of Parkland’s Board. “However, in the interest of resolution and collaboration with Simpson, Parkland has selected three of Simpson’s nominees who meet Parkland’s governance standards and propose to include one of the Simpson nominees on the special committee overseeing the strategic review.”
The three nominees Parkland and Simpson both selected are Brian Gibson, Karen Stuckey and Michael Christiansen.
“We are confident that Parkland’s proposed board, including three of Simpson’s nominees, is the best choice to oversee the strategic review process, protect the interest of all shareholders and find a resolution with Simpson while ensuring day-to-day operations remain on track,” continued Jennings.
Parkland’s annual general meeting of shareholders will take place on May 6 in Calgary, Canada.
