08:53 AM EDT, 03/17/2025 (MT Newswires) -- Parkland Corp. ( PKIUF ) shareholder Engine Capital, which holds a 2.5% stake in the refiner and gas-stop operator, on Monday called for the company's board to be reconstituted, saying the current members "cannot be trusted" to oversee a strategic review

Engine Capital is pressing for the board to be reconstituted with members selected by shareholders and independent directors to oversee the review. Its letter comes after Simpson Oil, which holds a 19.8% stake in Parkland, won a legal victory with the Ontario Superior Court ruling it is no longer bound by a 2019 governance agreement that prevented Simpson from engaging in any activism against Parkland or soliciting bids for the company.

"The Board wasted millions of shareholders' money on litigation to try to prevent Simpson Oil Limited from exercising its most basic right as a shareholder: voting its shares as it wishes. Shareholders should ask themselves if a strategic review would have even been contemplated by the Board if Parkland had succeeded in restricting Simpson's ability to vote against the Board," Engine said in its letter.

Parkland on March 5 conceded to shareholder pressure to launch a strategic review of its operations, following pressure from Simpson Oil. Parkland lost a court battle with Simpson last month as the Ontario Superior Court ruled Simpson is no longer bound by a 2019 governance agreement that prevented Simpson from engaging in any activism against Parkland or soliciting bids for the company.

Parkland shares closed Friday at $36.08, 1.8% under its closing price three-years earlier. Engine alleges the company's board "refused to engage with a credible strategic party who reportedly submitted a premium takeover offer in the summer of 2023. Importantly, the Board also failed to initiate a strategic process following the bid, which could have created competitive interest and resulted in a value-maximizing outcome for shareholders".

It also claimed the board has mismanaged an asset-divestment program and management has delivered "underwhelming results" after missing 2024 guidance targets despite twice lowering them during the year, according to the investor.

Calgary, Alberta-based Parkland could not immediately be reached for comment.