Investor urges Parkland to divest “non-core” assets
Engine Capital has petitioned the company to evaluate the sale or spinoff of these assets to “become a more focused fuel and convenience retailer”.
Engine Capital LP, which owns 2% of Parkland Corporation’s outstanding shares, announced that it has sent a letter to the company’s Board of Directors to encourage the sale or spinoff of “non-core” assets.
The message encourages the firm to explore all strategic alternatives to become a more focused fuel and convenience retailer. Engine states that Parkland was unable to achieve adequate returns for shareholders and compares to competitors such as Alimentation Couche-Tard, Laval and Quebec.
“It is worth noting that Parkland has underperformed both its convenience retailer and refinery peer groups over the 1-, 3-, 5- and 10-year periods. We are particularly troubled by Parkland’s staggering underperformance compared to Canadian convenience retailer champion, Alimentation Couche-Tard,” states the letter.
During 2021, Parkland announced a total of nine acquisitions, a strategy that slowed down in 2022. Currently, the company operates gas stations under the Pioneer, Columbia Fuels, Ultramar, Chevron and Fas Gas Plus brands, as well as franchised Esso locations.
