#Canada #Calgary #Parkland Corporation #Shareholder Value #strategic review

Parkland Corporation Reaffirms Leadership in Strategic Review

In a recent announcement, Parkland Corporation, a leading fuel distributor and retailer, stressed the critical role of its Board of Directors in navigating the current Strategic Review aimed at maximizing value for its shareholders. With an ongoing tussle for control from a minority shareholder, Simpson Oil Limited, Parkland has published a detailed rebuttal aimed at providing clarity and encouraging support for its Board.

Addressing Shareholders Concerns

Michael Jennings, the Executive Chairman of Parkland, highlighted that the recent actions by Simpson reflect an overt attempt to seize control without offering a control premium to the rest of the shareholders. In his commentary, Jennings asserted that the slate proposed by Simpson is comprised primarily of unqualified candidates who lack the requisite independence and experience needed to oversee such a complex review process. Jennings emphasized the importance of continuity and expertise brought by the current Board, which features a majority of independent directors with extensive backgrounds in energy and corporate governance.

Misleading Claims from Simpson

One of the core arguments made by Parkland is the assertion that Simpson has not presented a credible alternative for a governance structure or a viable CEO candidate, despite holding less than 20% of Parkland’s shares. Furthermore, the list of candidates furnished by Simpson has been termed as lacking not only independence but also the necessary aptitude for managing a publicly listed company like Parkland. This notion of independence has been called into question by their previous actions, which seem focused more on consolidating personal finances of the Simpson family rather than representing broader shareholder interests.

Ongoing Strategic Review Process

Parkland has confirmed that its Strategic Review is ongoing and is not influenced by the pressures from Simpson. This independent review, guided by a vastly experienced Board, seeks opportunities to maximize shareholder returns through well-researched governance and accountability frameworks. With the support of top investment banks like Goldman Sachs Canada and BofA Securities, Parkland aims to explore every avenue to enhance operational and financial output while ensuring that all shareholder voices are heard in the process.

Call to Action for Shareholders

As the countdown to the upcoming annual general meeting (AGM) approaches, Parkland is urging its shareholders to support the current Board by voting exclusively on the BLUE Proxy form. This step is emphasized as vital to prevent a minority shareholder agenda from derailing the company’s vision and value generation strategy. Parkland’s commitment to transparency is evident through the dissemination of materials aimed at informing shareholders thoroughly of the potential risks posed by Simpson’s intentions.

Conclusion: A Future-Focused Approach

Parkland Corporation stands firm in affirming its Board's capability to objectively lead the Strategic Review, distancing itself from the self-serving interests of a minority shareholder. The current governance structure is committed to not only maintaining the operational integrity of the company but also delivering long-term value to every stakeholder. The message is loud and clear: Parkland calls on investors to endorse the BLUE Proxy and trust in a leadership that prioritizes the collective interests over individual gains.