Proxy advisory firms ISS and Glass Lewis back Sunoco offer for Parkland

CALGARY - Two proxy advisory services are recommending shareholders vote in favour of Parkland Corp.'s planned takeover by U.S. company Sunoco LP.
Institutional Shareholder Services Inc. and Glass, Lewis & Co. are both endorsing the friendly cash-and-stock deal announced last month, which is valued at US$9.1 billion including assumed debt.
Parkland owns the Ultramar, Chevron and Pioneer gas station chains as well as several other brands in 26 countries and a refinery in Burnaby, B.C.
ARTICLE CONTINUES BELOW
Parkland's biggest shareholder Simpson Oil, which holds an almost 20 per cent stake, has said it plans to vote in favour of the offer. However, New York-based Engine Capital, which owns 2.5 per cent of Parkland's shares, has said it won't support the deal as it stands.
The shareholder vote is set for June 24.
ISS noted in a report that the deal came together in the last moments of a proxy context with Simpson, which had been pushing for a leadership overhaul and performance improvements.
'Given this backstory, there are inherent concerns that the process was reactive, accelerated, and/or placed (Parkland) in a disadvantageous bargaining position, and thereby resulted in an offer that undervalues the company,' the ISS report said.
'However, when viewed in proper context, there are compelling reasons to believe that this deal is the best path forward for shareholders.'
ISS said the deal is a way for shareholders to 'move on at a premium' from Parkland's long-standing issues while still being able to benefit from its upside potential.
Glass Lewis concluded in its report that while some shareholders, including Engine, were skeptical about the timing of the takeover announcement, it sees evidence that the Parkland board was motivated by the merits of the transaction and not solely self-preservation.
ARTICLE CONTINUES BELOW
ARTICLE CONTINUES BELOW
The proxy firm said the deal offers a 'credible path' toward resolving Parkland's problems.
'While shareholder scrutiny of the process is both understandable and appropriate, the terms of the agreement suggest that the board succeeded in negotiating a transaction that largely aligns with shareholder interests,' Glass Lewis said.
This report by The Canadian Press was first published June 16, 2025.
Companies in this story: (TSX: PKI)

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

The Market Online

26 minutes ago

• The Market Online

Top European copper-gold deposit paves path to production

Euro Sun Mining (TSX:ESM) signed a copper concentrates prepayment facility for up to US$200 million with Trafigura Pte The funds will expedite development of Euro Sun's 100-per-cent-owned Rovina Valley project, housing one of the world's largest undeveloped copper-gold deposits and the second-largest in all of Europe Euro Sun Mining stock has added 116.67 per cent year-over-year but remains down by 56.67 per cent since 2020 Euro Sun Mining (TSX:ESM) signed a copper concentrates prepayment facility for up to US$200 million with Trafigura Pte. This facility would allow the company to complete all permitting plus strategic investments at its Rovina Valley copper-gold project in Romania over the next 18 months. Rovina Valley is one of the world's largest undeveloped copper-gold deposits, and the second-largest in all of Europe, housing an estimated 7 million ounces of gold and 233,000 tons of copper. According to Friday's news release, Trafigura will assist with the syndication of a consortium to provide Euro Sun with up to US$200 million in additional debt upon Rovina Valley reaching the construction phase. A separate binding offtake agreement with Trafigura provides up to 100 per cent of commercial production for 7-9 years, subject to minimum agreed upon tonnages. The parties will now work towards a definitive agreement, subject to the satisfaction of Trafigura's ongoing due diligence. An initial US$2.5 million tranche is expected to become available in mid-to-late June 2025. Euro Sun Mining stock has added more than 44 per cent since Rovina Valley was recognized as a strategic asset by the European Union. Leadership insights 'We are very pleased to have signed this term sheet that we believe could significantly strengthen our financial position,' Grant Sboros, Euro Sun Mining's chief executive officer, said in a statement. 'We are working to obtain financial security for all our stakeholders, and a clear financial roadmap to support our strategic growth and advance the long-term vision for our Rovina Valley project.' 'As per our previous press release, the company is advancing with its environmental impact assessment submission and that will be followed with close engagement with Romanian officials to get the legislative outcome the project requires,' Sboros continued. 'Together with our strategic status granted and our financial position closer to being secured, we are on the cusp of being fully equipped to deliver this project for the people of Romania and Europe's benefit.' 'We are pleased to support Euro Sun in advancing the Rovina Valley project, home to the second-largest copper and gold deposits in Europe,' added Ross Ridgway, head of copper at Trafigura. 'As global demand for copper continues to grow—driven by electrification and industrialization—the need for secure, sustainable new sources of supply has rarely been more important.' About Euro Sun Mining Euro Sun is a mining company exploring and developing its 100-per-cent-owned Rovina Valley project in west-central Romania. Euro Sun Mining stock (TSX:ESM) is up by 4 per cent on the news trading at C$0.13 as of 12:55 pm ET. The stock has added 116.67 per cent year-over-year but remains down by 56.67 per cent since 2020. Join the discussion: Find out what everybody's saying about this copper and gold mining stock on the Euro Sun Mining Inc. Bullboard and check out the rest of Stockhouse's stock forums and message boards. The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.

Toronto Star

44 minutes ago

• Toronto Star

Conservation group makes $60M land deal to end mining threat outside Okefenokee Swamp

SAVANNAH, Ga. (AP) — A conservation group said Friday it has reached a $60 million deal to buy land outside the Okefenokee Swamp from a mining company that environmentalists spent years battling over a proposed mine that opponents feared could irreparably damage an ecological treasure. The Conservation Fund said it will buy all 7,700 acres (31.16 square kilometers) that Alabama-based Twin Pines owns outside the Okefenokee National Wildlife Refuge in southeast Georgia, halting the company's mining plans.

Winnipeg Free Press

an hour ago

• Winnipeg Free Press

Conservation group makes $60M land deal to end mining threat outside Okefenokee Swamp

SAVANNAH, Ga. (AP) — A conservation group said Friday it has reached a $60 million deal to buy land outside the Okefenokee Swamp from a mining company that environmentalists spent years battling over a proposed mine that opponents feared could irreparably damage an ecological treasure. The Conservation Fund said it will buy all 7,700 acres (31.16 square kilometers) that Alabama-based Twin Pines owns outside the Okefenokee National Wildlife Refuge in southeast Georgia, halting the company's mining plans. 'It's a big undertaking, but it was also an existential threat to the entire refuge,' said Stacy Funderburke, the Conservation Fund's vice president for the central Southeast. 'We've done larger deals for larger acres, but dollar-wise this is the largest deal we've ever done in Georgia.' A Twin Pines spokesman did not immediately respond to an email message seeking comment. Twin Pines of Birmingham, Alabama, had worked since 2019 to obtain permits to mine titanium dioxide, a pigment used to whiten products from paint to toothpaste, less than 3 miles (5 kilometers) from the southeastern boundary of the Okefenokee refuge near the Georgia-Florida line. The Okefenokee is the largest U.S. refuge east of the Mississippi River, covering nearly 630 square miles (1,630 square kilometers) in southeast Georgia. It is home to abundant alligators, stilt-legged wood storks and more than 400 other animal species. The mine appeared to be on the cusp of winning final approval early last year. Georgia regulators issued draft permits in February 2024 despite warnings from scientists that mining near the Okefenokee's bowl-like rim could damage its ability to hold water and increase the frequency of withering droughts. Wednesdays Columnist Jen Zoratti looks at what's next in arts, life and pop culture. Twin Pines insisted it could mine without damaging the swamp. Regulators with the Georgia Department of Environmental Protection agreed, concluding last year that mining should have a 'minimal impact' on the refuge. The agency revealed recently that work on final permits had stalled because Twin Pines had yet to submit a surety bond or equivalent financial assurance to show that it had $2 million set aside for future restoration of the mining site. It said the company was informed of the requirement 16 months ago.