Parkland Launches Strategic Review Process
CALGARY, Alberta — Parkland Corp. plans to explore opportunities to maximize value creation through a review of strategic alternatives, the company announced ahead of its earnings call for its 2025 fourth-quarter and year-end results.
The strategic review will be led by a special committee of the board that solely includes independent directors. The process will include analysis and evaluation of Parkland's business strategies and optimization opportunities, as well as consideration of value maximization alternatives that are in the best interests of all shareholders, the company said.
Alternatives could include, but are not limited to, asset divestments, acquisitions, transformative business combinations and a sale of the company. Goldman Sachs Canada Inc. and BofA Securities will serve as Parkland's financial advisors for the strategic review.
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The move comes just weeks after Simpson Oil, Parkland's largest shareholder and longtime critic, won a court ruling freeing it from voting and standstill restrictions required by a 2019 governance agreement. The agreement restricted Simpson from voting against Parkland's board or any of the board's recommendations while its ownership in Parkland remained above 5%.
"Parkland's board remains committed to acting in the best interests of all shareholders," said Michael Jennings, chair of Parkland's board of directors. "While we are confident in the tremendous value-creating potential of our business, strategic plan and management's ability to execute, the current share price does not fully reflect the intrinsic value of the company. As a result, our board believes the strategic review is a necessary step to explore opportunities to maximize value creation for all shareholders.
"We are openly inviting Simpson Oil to rejoin the company's board and participate on the special committee," he added.
President and CEO Bob Espey briefly touched on the strategic review during Parkland's March 6 earnings call, acknowledging that Parkland shares have "underperformed."
"While also offering a potential path to seek resolution with Simpson Oil, it's unfortunate that Simpson remains unwilling to engage in constructive dialogue with Parkland's board of directors," Espey said. "Our offer to join our board remains open and we would welcome them to participate in the strategic review process."
The company stressed that there is no guarantee that the strategic review process will result in a transaction and no guarantee of terms or timing if one does take place. However, Espey promised to continue actively engaging with shareholders as it takes place and to provide periodic updates.
Calgary-based Parkland Corp. is an independent supplier and marketer of fuel and petroleum products and a convenience store operator. Parkland currently services customers across Canada, the United States, the Caribbean region and the Americas through three channels: retail, commercial and wholesale.
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