Latest news with #EngineCapital
Toronto Star
2 days ago
- Business
- Toronto Star
Activist investor Engine Capital plans to vote against US$9.1B Parkland-Sunoco deal
CALGARY - A major shareholder in fuel refiner and retailer Parkland Corp. says it plans to vote against its planned takeover by U.S. heavyweight Sunoco LP. Engine Capital owns 2.5 per cent of Parkland's shares, making it one of the Calgary-based company's biggest investors.
CTV News
2 days ago
- Business
- CTV News
Activist investor Engine Capital plans to vote against US$9.1B Parkland-Sunoco deal
A Pioneer gas station is shown in Carleton Place, Ont., on Saturday, Nov. 8, 2008. THE CANADIAN PRESS/Sean Kilpatrick CALGARY — A major shareholder in fuel refiner and retailer Parkland Corp. says it plans to vote against its planned takeover by U.S. heavyweight Sunoco LP. Engine Capital owns 2.5 per cent of Parkland's shares, making it one of the Calgary-based company's biggest investors. In a letter to Parkland's board of directors, Engine's leadership argues the Sunoco deal was rushed, the price is too low and that there are likely better options available. A month ago, Parkland and Sunoco announced a friendly cash-and-stock takeover deal valued at US$9.1 billion including debt Shareholders are to vote on the transaction at a meeting set for June 24 in Calgary. Engine says it has nothing against Sunoco and would happy to become a long-term investor in that company — but only if its offer is rejigged to better reflect Parkland's value. This report by The Canadian Press was first published June 6, 2025. Lauren Krugel, The Canadian Press
Bloomberg
2 days ago
- Automotive
- Bloomberg
Parkland Investor Engine Capital to Vote Against Sunoco Takeover
Engine Capital LP told the board of Canadian fuel distributor Parkland Corp. it plans to vote against the company's $9.1 billion takeover by Sunoco LP, calling the sale process expedited and flawed. Engine, which says it owns about 2.5% of Parkland, said Friday in a letter to the board that the deal announced last month materially undervalues Parkland and that there are better alternatives.
Globe and Mail
2 days ago
- Business
- Globe and Mail
Engine Capital pushes Sunoco to increase $7.7-billion takeover bid for Parkland
Hedge fund Engine Capital LP is pushing Sunoco LP SUN-N to boost its $7.7-billion friendly takeover bid for gas station owner Parkland Corp. PKI-T On Friday, New York-based Engine Capital said it plans to oppose Sunoco's offer for Parkland at a shareholder vote scheduled for June 24. Engine Capital owns 2.5 per cent of Calgary-based Parkland and has been campaigning for the company's sale. Parkland owns more than 4,000 outlets, including the On the Run convenience store chain, and a Burnaby, B.C., oil refinery supplying fuel to the Lower Mainland. In early May, Sunoco offered $44 per Parkland share in a combination of its own shares and cash in a transaction that would create one of North America's largest gas station and convenience store operators. Andrew Willis: Sunoco's bid for gas station operator Parkland fits Trump's MAGA agenda On Friday, Engine Capital said in a press release the Sunoco offer 'materially undervalues Parkland.' 'To be clear, our opposition to this transaction is directed at its terms – not at Sunoco or its management team,' said Engine Capital managing partner Arnaud Ajdler and partner Brad Favreau. 'We have great respect for both and would welcome the opportunity to become long-term investors in Sunoco if the transaction terms more accurately reflected Parkland's intrinsic value.' Parkland announced the takeover after facing an activist campaign from its largest shareholder, Simpson Oil Ltd., aimed at replacing the board. Engine Capital said: 'The sale process conducted by the board was expedited and flawed.' Simpson Oil owns 19.8 per cent of Parkland and wanted to install new leadership at the company. The company has not commented on Sunoco's bid. In 2023, Sunoco offered to buy Parkland for $18 per share and 0.443 Sunoco units, according to Engine Capital. Parkland's board turned down the offer. The fund manager said the previous bid would now value Parkland at $50.70 per share. 'We believe the 2023 Sunoco proposal – while still undervaluing Parkland – would better reflect the intrinsic value of the company,' Engine Capital said. Parkland and Sunoco structured the takeover with a wrinkle meant to allow the deal to close, even if Engine Capital and Simpson Oil vote against the transaction. The acquisition is structured as a plan of arrangement, requiring approval from 66.6 per cent of votes cast by Parkland shareholders. However, Sunoco negotiated the right to switch the offer into a takeover bid, which only needs support from 50 per cent of all outstanding Parkland shares, at any time up until the June 24 meeting.
Daily Mail
20-05-2025
- Business
- Daily Mail
Engineer Smiths buoyed by demand for baggage scanners
Smiths Group forecasts annual sales growth towards the top end of its guidance range, thanks to a robust performance by its sensors business. The FTSE 100 engineering company reported organic turnover increased by 10.6 per cent in the quarter ending 3 May, bringing total revenue growth to 9.6 per cent over the first nine months of its financial year. Its Smiths Detection arm, which makes explosives detectors and baggage scanners, scored 'strong double-digit' percentage rate over the quarter on solid demand from the aviation sector. Smiths also achieved double-digit growth from its Interconnect segment, whose products include radio frequency components, thanks to contracts from aerospace and defence firms and a recovery in the semiconductor market. For the full year, Smiths expects its organic revenues to rise by 6 to 8 per cent and its margins to expand by around 40 to 60 basis points. All four of its businesses scored higher sales, but its John Crane arm only achieved a marginal rise due to a cyber incident in January that Smiths said had a 'longer than expected impact' on growth. Consequently, the London-based company believes the division's second-half performance will be 'broadly in line with the first half'. Smiths expects its full-year revenue to increase by 6 to 8 per cent on an organic basis and its margins to expand by about 40 to 60 basis points. The firm is currently planning a major restructuring amidst pressure from activist investors like Engine Capital to break up the business and boost shareholder returns. It expects to announce the sale of its Interconnect arm by the end of 2025, followed by either a demerger or disposal of its Smiths Detection segment. Roland Carter, chief executive of Smiths, said: 'We are executing on the strategic actions we announced in January with pace and purpose to unlock our inherent value and become a premium-rated company.' He added: 'The sale process for Smiths Interconnect is firmly underway and preparatory work for the Smiths Detection separation process is also moving forwards.' Smiths also declared that it anticipates 'limited' impact from tariffs owing to its 'local-for-local model.' About 45 per cent of its sales are US-generated. It told investors it was 'closely monitoring' the potential impact of tariffs on demand and had not observed 'any material changes in customer behaviour to date.' Smiths Group shares were 4.7 per cent up at £21.50 just before midday on Tuesday, making them the FTSE 100 Index's second-biggest riser.
