Analysts are advising Parkland Corp. shareholders to 'begrudgingly' accept Sunoco LP's roughly $7.7-billion takeover offer, despite believing it undervalues the company. This recommendation follows Parkland's largest shareholder, Simpson Oil Ltd., agreeing to support the deal, ending speculation of opposition. The offer, which is less than a previous bid, was announced just before Simpson Oil was poised to gain board control, raising governance concerns.
Parkland shareholders should ‘begrudgingly’ accept $7.7-billion Sunoco takeover, analyst says
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TL;DR: Key points with love ❤️Analysts are advising Parkland Corp. shareholders to 'begrudgingly' accept Sunoco LP's roughly $7.7-billion takeover offer, despite believing it undervalues the company. This recommendation follows Parkland's largest shareholder, Simpson Oil Ltd., agreeing to support the deal, ending speculation of opposition. The offer, which is less than a previous bid, was announced just before Simpson Oil was poised to gain board control, raising governance concerns.
Trending- 1 2018 & 2022: Simpson Oil acquires Parkland stake by selling Caribbean network.
- 2 Summer 2023: Sunoco makes a previous, higher offer for Parkland.
- 3 Late 2023: Two Simpson-appointed Parkland directors resign.
- 4 Earlier this year: Ontario Superior Court sides with Simpson Oil.
- 5 May 5: Parkland agrees to Sunoco's $7.7-billion offer.
- 6 Friday (before Monday): Engine Capital states deal undervalues Parkland.
- 7 Late Friday (before Monday): Simpson Oil announces support for Sunoco offer.
- 8 Monday: Analysts advise shareholders to accept the offer.
- 9 June 24: Parkland's meeting, including a vote on the Sunoco offer.
- Parkland shareholders advised to accept undervalued offer
- End of speculation regarding Simpson Oil's opposition
- Potential change in Parkland's ownership and governance
- Parkland shares likely to fall if deal is rejected
What: Analysts recommend Parkland Corp. shareholders accept Sunoco LP's $7.7-billion takeover offer, even though it's seen as undervaluing the company, following Simpson Oil Ltd.'s decision to support the deal.
When: Monday (analyst advice); Late Friday (Simpson Oil's support announced); Earlier Friday (Engine Capital's statement); May 5 (Parkland agreed to Sunoco's offer); Summer of 2023 (previous Sunoco offer); June 24 (Parkland meeting moved to); Late 2023 (Simpson-appointed directors resigned); Earlier this year (Ontario Superior Court sided with Simpson Oil); 2018 and 2022 (Simpson Oil acquired Parkland stake).
Where: Canada (Parkland Corp. is Canadian); United States (Sunoco LP is American, Engine Capital is New York-based); Cayman Islands (Simpson Oil Ltd. is based); Barbados (Sir Kyffin Simpson's origin); Ontario (Ontario Superior Court).
Why: Simpson Oil's support for the deal, despite previous opposition and concerns about undervaluation, is driven by a belief that it will address 'lamentable governance and performance issues' at Parkland and that there are no other buyers, making it the best available option.
How: Sunoco LP made a $7.7-billion offer (US$3-billion in shares and US$2.6-billion in cash) for Parkland Corp. Simpson Oil Ltd., Parkland's largest shareholder, decided to support the offer, influencing analysts' recommendations for other shareholders to accept the deal.