US activist hedge fund Engine Capital is agitating for a complete overhaul of Canadian fuel company Parkland Corp after accusing the firm of “staggering” underperformance, according to a report by the Financial Post.
In an open letter delivered to the Calgary-based company on Wednesday, Engine said it wants to see a sale or spin-off of non-core assets, including Parkland’s refinery and fuel distribution operations, to create a “pure play” fuel retail and convenience store business.
The letter goes on to say that if Parkland is unwilling to implement the recommendations it should consider a sale of the entire business to private equity or strategic investors.
Engine, which has $750 million in asset under management, and owns a 2% stake of Parkland, also wants the company to strengthen its board with the addition of new directors.
In statement, Parkland acknowledged receipt of the letter and said it would be considered by the board. “The company appreciates constructive shareholder input and will provide an update in due course,” the statement said.
