Parkland names two new directors as activist investor demands board shakeup
Parkland Corp. has named two new independent directors as an activist investor calls for an overhaul of its board.
The Calgary-based fuel refiner and retailer, which is considering putting itself up for sale, has named Felipe Bayon and Sue Gove to its board of directors, effective Tuesday.
With the latest additions, Parkland said it has added six independent directors to its board over the past two years.
Bayon is a former chief executive of Ecopetrol S.A., Colombia's largest integrated energy company, while Gove is a member of the board at auto parts company LKQ Corp. and a former chief executive of Bed Bath & Beyond.
"Felipe and Sue are accomplished executives with expertise in industries and sectors that align with Parkland's business," board chair Michael Jennings said in a news release.
"Felipe's deep energy industry experience in Parkland's broader international region combined with Sue's extensive retail experience and governance expertise, will be invaluable as the company explores all options to maximize value for all shareholders."
Parkland announced earlier this month that it would formally review ways to boost shareholder returns, including an all-out sale of the company, a merger, or asset sales and purchases.
It was a move long pushed by Engine Capital LP, the New York activist hedge fund that owns 2.5 per cent of Parkland's shares, and Simpson Oil, the Cayman Islands-based firm that owns 20 per cent of Parkland.
Engine said on Monday that it wants to see a "comprehensive reconstitution" of the Parkland board.
"At this point, it is clear that the board has failed in its core responsibility to act in the best interests of shareholders and therefore cannot be trusted to oversee the strategic review," it said in a news release.
Parkland said an invitation remains open to Simpson to rejoin its board and take part in a special committee reviewing strategic alternatives. Simpson directors had resigned from the board amid a governance dispute.
Simpson sued Parkland last year to overturn restrictions preventing it from voting against board recommendations and soliciting or making its own bid for the company. The Ontario Superior Court of Justice ruled in Simpson's favour in February.
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