Canada's Parkland launches strategic review to consider sale of company

By Amanda Stephenson

CALGARY, March 5 (Reuters) - Canadian fuel refiner and retailer Parkland Corp PKI.TO said on Wednesday it had launched a strategic review that could result in the sale of the company.

Calgary-based Parkland said the review was necessary to "maximize value creation for shareholders" and would explore the possibility of asset divestments, acquisitions and business combinations in addition to an outright sale.

Parkland, which has a market value of about C$6 billion ($4.19 billion), has been under pressure with respect to its share price performance for more than two years.

U.S.-based activist investor Engine LP has urged the company to sell or spin off its refinery in Burnaby, British Columbia.

It has also faced internal strife in the form of a dispute with Simpson Oil, its largest shareholder with a 20% stake. Simpson has called on Parkland to conduct a strategic review but no longer has a seat on the company's board after the resignation of two Simpson-nominated directors in December 2023.

No reason for the resignations was given at the time, but Simpson has continued to publicly express concern about the direction of the company, including recently in an open letter to Parkland's board dated February 25.

In that letter, Simpson also called for a strategic review and the consideration of a possible sale of Parkland.

Parkland said on Wednesday it was inviting Simpson to rejoin the company's board and participate in the strategic review.

($1 = 1.4335 Canadian dollars)