#Canada #Calgary #Parkland Corporation #ISS #Sunoco LP

Parkland Corporation Gains Proxy Endorsement for Strategic Arrangement with Sunoco

In a significant development for Parkland Corporation (TSX: PKI), two of the leading independent proxy advisory firms—Institutional Shareholder Services Inc. (ISS) and Glass Lewis & Co. (Glass Lewis)—have publicly endorsed the proposed arrangement between Parkland and Sunoco LP ahead of the upcoming Annual and Special Meeting of Shareholders. This endorsement highlights the strategic advantages and potential value enhancement that the merger could bring to Parkland’s shareholders, reinforcing the recommendation to vote in favor of the deal.

A Smart Path Forward for Shareholders

ISS's analysis points to numerous reasons why this merger is favorable for Parkland's shareholders. They noted the attractive premium offered in the deal, the flexible payment options available to shareholders, and the absence of competing proposals. Moreover, ISS emphasizes the support from Parkland's largest shareholder, which validates the potential for future growth and financial upside following the merger. This sentiment resonates with many investors, as these key factors are crucial in guiding strategic decisions within the competitive energy sector.

On the other hand, Glass Lewis has focused on the enhanced diversification that the merger presents. The potential scale and growth opportunities arising from joining forces with Sunoco LP present a compelling case. Glass Lewis pointed out that the C-corp holding structure could significantly improve capital market access, allowing the combined entity to leverage its resources more effectively. Such strategic complementarity can help carve out a stronger market position for Parkland amid an evolving energy landscape.

Other Key Support for the Arrangement

Additional validations for the merger stem from the fairness opinions provided to Parkland’s Board of Directors by noted financial institutions, including Goldman Sachs Canada Inc. and BofA Securities, Inc. Furthermore, the independent Special Committee of the Board also received a fairness opinion from BMO Nesbitt Burns Inc., fostering a strong confidence in the decision to move forward with Sunoco. The unanimous recommendation from Parkland’s Special Committee and Board of Directors to vote in favor is a testament to the strategic depth and potential of this merger.

Getting Ready for the Shareholder Meeting

To ensure their votes are counted, Parkland’s shareholders are encouraged to submit their votes by Friday, June 20, 2025, at 9:00 AM Calgary Time. This decision is crucial not only for the proposed arrangement with Sunoco but also for a series of important items on the agenda during the Meeting, scheduled for June 24, 2025, at the Calgary TELUS Convention Centre. Key items will include the election of the Company's Board of Directors, the appointment of auditors, and discussions around executive compensation approaches.

The overwhelming recommendations from both ISS and Glass Lewis regarding these agenda items showcase a broad consensus on the efficiency and governance within Parkland’s operations. Ensuring a solid leadership structure is essential for navigating the complexities of merger integration and operational effectiveness post-completion.

Parkland Corporation at a Glance

Parkland Corporation stands out as a prominent player in international fuel distribution and marketing, functioning across twenty-six countries in the Americas. Its versatile retail network not only caters to consumer needs but also provides commercial solutions for businesses requiring fuel supply. As a forward-thinking company, Parkland is committed to sustainability through renewable fuel production and ultra-fast EV charging solutions, reflecting an awareness of environmental impact within its operations.

The combined strength of Parkland and Sunoco is poised to offer enriched services and operational effectiveness, matching the dynamic requirements of both consumers and businesses. With a robust strategy that emphasizes customer advantage and supply efficiency, Parkland aims to become the top choice for consumers, guided by its core values of safety, integrity, community, and respect.

In conclusion, the backing from ISS and Glass Lewis sets a strong precedent as Parkland Corporation prepares to navigate this pivotal moment in its growth trajectory. Shareholders are urged to engage in the voting process to shape the future and realize the benefits of a synergistic union with Sunoco.