Parkland Corp. has announced plans to sell 157 gas and convenience store locations in six provinces, according to the Canadian Press.
The assets include stations under the On the Run convenience store brand and brands like Chevron, Ultramar, Pioneer and FasGas. The company is collaborating with NRC Realty & Capital Advisors LLC and Colliers Canada on the sale. Most of these stations are in Ontario and Quebec, although there are also stations in Alberta, British Columbia, Manitoba, Saskatchewan and Quebec.
“As we continue to grow, we have identified sites that no longer fit our long-term strategic objectives in their current format. While high-quality, these locations would be better suited under someone else’s ownership,” said Francis Lapointe, Parkland’s vice president of Canadian retail operations.
Parkland says the retail and fuel locations will be bundled with long-term fuel supply agreements, a feature to enhance their appeal to “experienced, entrepreneurial operators.”
With 4,000 retail and fuel locations across Canada, the U.S. and the Caribbean, Parkland also owns and operates the Burnaby, B.C. refinery, a key facility responsible for supplying approximately a quarter of the gasoline and diesel consumed in the western province.
The announcement coincides with increasing pressure on Parkland from activist investor Engine Capital LP, based in New York. Engine Capital has pushed for a thorough reorganization of the board of directors. In addition, Parkland saw the departure of two board members at the end of the previous year, who were representing Simpson Oil, the company’s biggest shareholder.
Simpson Oil has signalled its intention to explore avenues to safeguard its shareholder rights, particularly as restrictions under an existing agreement — limiting its capacity to nominate and vote for board members at Parkland — are set to expire on March 31.
Parkland will hold an annual general meeting on Thursday (March 28).
