Parkland rejects assertions made by Simpson
Oil
Simpson Oil's approach runs counter to
Parkland's continuing good faith efforts to reach a resolution with
its significant shareholder
Parkland will vigorously defend the interests
of all shareholders while remaining open to continued negotiations
to resolve differences with SOL
CALGARY,
AB, Aug. 13, 2024 /PRNewswire/ - Parkland
Corporation ("Parkland", "we", the "Company", or "our") (TSX: PKI)
is surprised and disappointed by the application initiated by
Simpson Oil Limited ("SOL") today in the midst of Parkland's
ongoing, good faith efforts aimed at resolving its differences with
SOL. The Company firmly rejects any characterization by SOL that
the routine turnover in the management team over the past five
years resulted in a material adverse change that would relieve SOL
of any of its obligations under the Governance Agreement. This
desperate legal maneuvering is without precedent.
"Parkland has worked tirelessly to resolve differences with SOL
whose latest actions indicate they are seeking greater influence
over our Board than we believe is in the best interests of all our
shareholders," said Michael
Jennings, Chairman of Parkland's Board of
Directors.
"Parkland's Board and Management are aligned in defending the
Company's rights and the interests of all its shareholders," added
Jennings. "We continue to remain open to a constructive resolution
with SOL. We are ready to reengage with SOL at any time and are
committed to reaching a resolution that maximizes shareholder
value, ensures good governance practices, and protects the rights
and interests of all our shareholders."
Ongoing Efforts to Reach Amicable Resolution
Parkland has worked to resolve differences with SOL, aiming to
enhance investor confidence and maximize value for all
shareholders. The Company has made significant strides on several
matters of concern to SOL, including the transition to our new
Chairman Michael Jennings, and
ongoing Board renewal, with three recent new Director
appointments.
To find resolution with SOL, Parkland remains willing to sunset
the 2019 Governance Agreement and reappoint two SOL nominees to the board, in order to allow
Parkland to continue to execute its strategy without
disruption.
Despite these latest disruptions, Parkland and its management
team remain committed to delivering shareholder value by executing
its strategic plan focused on organic growth, improving returns,
debt reduction, and doubling cash flow per share.
Background on the Governance Agreement
The Governance Agreement was entered into freely by SOL on
January 8, 2019, as part of the
transaction where Parkland acquired 75 percent of SOL Investment,
resulting in SOL becoming a significant shareholder of
Parkland.
Governance agreements are a common instrument, where a
transaction creates a significant shareholder, designed to assure
certainty and stability to the company and help protect the rights
of all other shareholders.
About Parkland Corporation
Parkland is an international fuel distributor, marketer, and
convenience retailer with operations in 26 countries across the
Americas. We serve over one million customers each day. Our retail
network meets the fuel and convenience needs of everyday consumers.
Our commercial operations provide businesses with industrial fuels
so that they can better serve their customers. In addition to
meeting our customers' needs for essential fuels, we provide a
range of choices to help them lower their environmental impact.
These include renewable fuels sourcing, manufacturing and blending,
carbon and renewables trading, solar power, and ultra-fast EV
charging. With approximately 4,000 retail and commercial locations
across Canada, the United States and the Caribbean region, we have developed supply,
distribution and trading capabilities to accelerate growth and
business performance.
Our strategy is focused on two pillars: our Customer Advantage
and our Supply Advantage. Through our Customer Advantage, we aim to
be the first choice of our customers, cultivating their loyalty
through proprietary brands, differentiated offers, our extensive
network, competitive pricing, reliable service, and our compelling
loyalty program. Our Supply Advantage is based on achieving the
lowest cost to serve among independent fuel marketers and
distributors in the hard-to-serve markets in which we operate,
through our well-positioned assets, significant scale, and deep
supply and logistics capabilities. Our business is underpinned by
our people and our values of safety, integrity, community and
respect, which are deeply embedded across our
organization.
Forward-Looking Statements
Certain statements contained in this news release constitute
forward-looking information and statements (collectively,
"forward-looking statements"). When used in this news release, the
words "aim", "continue", "focus", "will", "would" and similar
expressions are intended to identify forward-looking statements. In
particular, this news release contains forward-looking statements
with respect to, among other things, the execution of Parkland's
corporate strategy, Parkland's strategic plan and the focus
thereof, Parkland's contractual rights and the enforcement of such
rights, including the terms of the Governance Agreement, Parkland's
plan to focus on organic growth, improving returns, debt reduction,
and doubling cash flow per share, and Parkland's Customer Advantage
and Supply Advantage.
These statements involve known and unknown risks, uncertainties
and other factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking
statements. No assurance can be given that these expectations will
prove to be correct and such forward-looking statements included in
this news release should not be unduly relied upon. These
forward-looking statements speak only as of the date of this news
release. Parkland does not undertake any obligations to publicly
update or revise any forward-looking statements except as required
by securities laws. Actual results could differ materially from
those anticipated in these forward-looking statements as a result
of numerous risks, assumptions and uncertainties including, but not
limited to: general economic, market and business conditions;
Parkland's ability to execute its business strategy; action by
other companies; and other factors, many of which are beyond the
control of Parkland. See also the risks and uncertainties described
under the headings "Cautionary Statement Regarding Forward-Looking
Information" and "Risk Factors" in Parkland's current Annual
Information Form, and under the headings "Forward-Looking
Information" and "Risk Factors" in Parkland's Management's
Discussion and Analysis for the most recently completed financial
period, each as filed on SEDAR+ and available on Parkland's website
at www.parkland.ca. The forward-looking statements contained in
this news release are expressly qualified by this cautionary
statement.
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SOURCE Parkland Corporation
