CALGARY, AB, Aug. 13, 2024 — Parkland Corporation is expressing surprise and disappointment regarding a legal application submitted by Simpson Oil Limited amidst ongoing discussions aimed at resolving their differences. The company rejects any claims by Simpson Oil that recent changes in management represent a significant adverse shift that would absolve their obligations under the existing Governance Agreement.
Michael Jennings, Chairman of Parkland’s Board of Directors, stated, “We have worked diligently to address concerns raised by Simpson Oil, whose recent actions suggest an intention to exert undue influence over our Board, which is not in the best interests of our shareholders.”
Jennings further emphasized the commitment of Parkland’s Board and Management to safeguard the rights of shareholders while remaining open to constructive dialogue. “We are prepared to reengage with Simpson Oil at any moment to achieve a resolution that prioritizes shareholder value and effective governance,” he noted.
Commitment to Resolving Disputes
Parkland is dedicated to addressing differences with Simpson Oil while enhancing investor confidence and maximizing value. The company has made notable progress on several issues, including leadership transitions and recent board renewals following the appointments of three new directors.
In seeking resolution, Parkland has proposed to transition from the 2019 Governance Agreement and to reappoint two Simpson Oil nominees to the board to ensure strategic continuity.
Despite current challenges, Parkland remains focused on its long-term goals, including organic growth, enhanced returns, and increasing cash flow per share, ensuring value for shareholders.
Understanding the Governance Agreement
The Governance Agreement was established on January 8, 2019, after Parkland acquired a 75 percent stake in Simpson Oil, designating Simpson Oil as a significant shareholder. Such agreements aim to maintain stability and protect the rights of all shareholders in significant transactions.
About Parkland Corporation
Parkland Corporation is an international fuel distributor and marketer, operating in 26 countries across the Americas and serving over one million customers daily. The company offers a broad range of fuels and services designed to meet both consumer and business needs while promoting environmentally friendly choices, including renewable fuels and ultrafast EV charging. With around 4,000 retail and commercial locations, Parkland leverages its supply, distribution, and trading capabilities to enhance growth and performance.
Parkland’s strategic focus is based on two core pillars: Customer Advantage and Supply Advantage, aiming to cultivate customer loyalty and achieve cost-efficiency in operations. The company’s commitment to its values, including safety, integrity, and community, drives its business objectives.
Forward-Looking Statements
This news release includes forward-looking statements regarding Parkland’s corporate strategies, operational goals, and expected outcomes. Such statements are subject to various risks and uncertainties that could cause actual results to differ significantly. Readers are advised to consider these factors and should not rely solely on the forward-looking statements contained herein, which speak only as of the date of this release. Parkland will not undertake any obligation to update these statements unless required by law.
