PKIUF - Parkland should explore options including sale Engine Capital says

2023-03-22 08:28:52 ET

Engine Capital said Wednesday that Parkland ( OTCPK:PKIUF ) should explore strategic alternatives including a sale or tax-free spinoff of non-core assets "to become a more focused fuel and convenience retailer."

In a letter to the company's board, Engine Capital said Parkland ( OTCPK:PKIUF ) currently trades at a considerable discount to its retail peers and intrinsic value, noting the company has accumulated a range of assets that are not typically owned by pure play fuel and convenience operators, detracting from Parkland's underlying valuation and leading investors to view the company as a conglomerate with disparate assets, instead of a pure play convenience retailer.

"We are particularly troubled by Parkland's staggering underperformance compared to Canadian convenience retailer champion, Alimentation Couche-Tard," said Engine Capital, which owns ~2% of Parkland's ( OTCPK:PKIUF ) outstanding shares.

Last week, Couche-Tard agreed to buy nearly 2K gasoline stations in Europe from TotalEnergies for €3.1B .

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