Parkland, activist investor Simpson Oil, nominate competing director slates

A boat travels past the Parkland Burnaby Refinery on Burrard Inlet at sunset in Burnaby, B.C., on Saturday, April 17, 2021. THE CANADIAN PRESS/Darryl Dyck

CALGARY — Parkland Corp. and its biggest shareholder have each proposed competing board slates as their dispute heats up ahead of the fuel refiner and retailer’s annual general meeting next month.

Simpson Oil Ltd., the Cayman Islands-based firm that owns almost 20 per cent of Parkland’s shares, has named nine nominees it wants to see voted in as directors at the meeting set for May 6 in Calgary.

“While we remain supporters of the company and its employees and continue to see Parkland’s significant value potential, the current leadership has failed all of us,” Simpson Oil wrote in an open letter to fellow investors on Monday.

“New leadership and new board members are needed to hold that management accountable.”

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Simpson bought its stake in Parkland in 2019, after the Calgary-based company acquired Simpson’s Caribbean fuel marketing subsidiary Sol Investments Ltd.

“Unfortunately, the elements of Parkland that attracted us in 2019 have been mismanaged out of existence,” Simpson said on its Refuel Parkland website, where it aims to make the case for sweeping change.

In a news release Monday, Parkland called Simpson’s board proposal an attempt to seize control of the company without paying a premium.

It said that while it is disappointed by Simpson’s “adversarial approach,” Parkland is willing to meet the activist shareholder partway as it put forward its own 13-member slate, which it sees being reduced to 11 before 2026 as more senior directors retire.

“Many members of the Simpson slate lack credibility and relevant experience to meet the standards required to govern a public company of Parkland’s scale and complexity,” said board chair Michael Jennings.

“However, in the interest of resolution and collaboration with Simpson, Parkland has selected three of Simpson’s nominees who meet Parkland’s governance standards and propose to include one of the Simpson nominees on the special committee overseeing the strategic review.”

After months of pressure from Simpson and another activist shareholder, Engine Capital, Parkland said last month it would review options to boost shareholder value, including putting the entire company up for sale. Other options could include asset sales or purchases, or a merger.

In its letter, Simpson called for the departure of Parkland chief executive Bob Espey, who has been in the role for 14 years. Simpson lambasted Parkland leaders for high senior leadership turnover and a lack of succession planning.

Other priorities include being more disciplined in which opportunities to pursue, cutting costs, running an honest and credible strategic review and improving financial reporting and investor communications.

Also Monday, Parkland announced the appointment of Brad Monaco as permanent chief financial officer. Monaco has filled the job on an interim basis since Jan. 1.

This report by The Canadian Press was first published April 7, 2025.

Companies in this story: (TSX: PKI)

Lauren Krugel, The Canadian Press