Activist investor Engine Capital on Wednesday backed largest shareholder Simpson Oil’s call to put Canadian fuel distributor Parkland Corp on the block as part of a strategic review, saying a sale would result in more value.
Simpson Oil, which holds a 19.7% stake in Parkland, had called for a strategic review earlier this month. The call was rejected by Parkland saying it did not deem a strategic review necessary and in the best interests of the majority of its shareholders.”
Engine Capital, which has a 2.5% stake in Parkland, said it expects any potential transaction to be priced at C$64 per share. The implied value would be a premium of about 49% to Parkland’s last close, as per Reuters calculations.
“We believe a sale of the Company (in one or multiple transactions) is likely to result in a transaction at a price that is superior to the present value of the current strategic plan,” Engine Capital said in a release.
Parkland did not immediately respond to a Reuters request for comment.
In January, Engine Capital had also asked for the refreshment of Parkland’s board, saying it was concerned about the departures of Simpson Oil board members Marc Halley and Michael Christiansen, after being directors for eight months.
(Reporting by Seher Dareen in Bengaluru; Editing by Anil D’Silva)