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GRAND CAYMAN, Cayman Islands - Simpson Oil Limited, the largest shareholder of Parkland Corporation (market cap: $4.5 billion), announced today that over 60% of Parkland’s shares have been voted on its GOLD Proxy Card, signaling support for its proposed significant changes at Parkland’s upcoming Annual General Meeting (AGM) on May 6, 2025. According to InvestingPro data, Parkland has maintained dividend payments for 32 consecutive years and raised them for 13 straight years, demonstrating strong shareholder returns despite current governance challenges. Simpson Oil, which holds 19.8% of Parkland’s outstanding common shares, expects that its nominees will secure a majority on the company’s board of directors based on the proxies received.
The company expressed gratitude to shareholders for their support and stated that the new directors intend to prioritize shareholder value, boardroom accountability, and a credible strategic review process. With a current dividend yield of 4.09% and an overall financial health score of "GOOD" from InvestingPro, Parkland shows fundamental strength despite trading at a relatively high P/E ratio of 48.6x. Simpson Oil’s nominees plan to collaborate with the current directors to ensure a smooth transition at the AGM scheduled for next Tuesday, without any unnecessary delays or entrenchment tactics by the incumbent board.
While the proxy tabulations released by Simpson Oil are not the final vote tallies, the actual voting is set to occur at the AGM, with the final results to be tabulated by Parkland’s scrutineers and filed on SEDAR+ following the meeting.
Shareholders who have already voted with the GOLD Proxy card have been advised to maintain their position. Those who have voted using the management proxy or have not yet voted and wish to support Simpson Oil’s nominees can still vote using the GOLD proxy. The company has indicated that late votes will be accepted if a decision is made to waive the cut-off. Additionally, shareholders retain the right to revoke a previously submitted management proxy at any point before the AGM begins.
This development comes amid a broader context of shareholder activism, where significant investors seek to influence company policies and governance. The information reported is based on a press release statement from Simpson Oil Limited. With Parkland’s earnings report due in just three days and analysts projecting profit growth for the year, InvestingPro subscribers can access 8 additional key insights and a comprehensive Pro Research Report, helping investors make informed decisions during this period of corporate transformation.
In other recent news, Parkland Corporation has released preliminary first-quarter 2025 financial results, reporting an adjusted EBITDA of approximately $375 million, which fell short of analyst projections. The company also adjusted its 2025 financial guidance to the lower end of its previously stated range of $1.8 billion to $2.1 billion. Amid these developments, Parkland’s President & CEO, Bob Espey, announced his resignation under pressure from the company’s largest shareholder, Simpson Oil Limited. This leadership change coincides with a significant proposal from Simpson Oil to overhaul Parkland’s board of directors, nominating nine new candidates to address governance and financial issues.
Raymond James has maintained its Outperform rating on Parkland but reduced its price target from C$47.00 to C$45.00, reflecting the company’s recent challenges. S&P Global Ratings revised Parkland’s outlook to negative from stable, citing weaker-than-expected financial performance at the end of 2024, including a 17% decline in EBITDA. Contributing factors included challenging macroeconomic conditions, weak fuel volumes, and soft convenience store sales. Additionally, Parkland’s Burnaby refinery faced operational setbacks, leading to a sharp drop in EBITDA.
On another front, Revvity, Inc. received FDA approval for its Auto-Pure 2400 platform, enhancing latent tuberculosis diagnostics. This approval marks a significant advancement in the efficiency of TB testing and aligns with Revvity’s global efforts to combat infectious diseases. The company reported revenues exceeding $2.7 billion in 2024 and continues to serve a diverse range of industries worldwide.
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