Activist calls on Parkland to buy back shares and reduce debt
BNN Bloomberg
An activist investor that pushed for changes at Parkland Corp. earlier this year is making new recommendations such as prioritizing share buybacks.
In a letter to the Parkland board, Engine Capital commended the company on the work it has done so far including changes at the board and plans to sell non-core assets.
However, Engine Capital says Parkland remains undervalued and is making a number of recommendations including refining the company’s capital allocation, better aligning management compensation with shareholders' interests and simplifying its operations.
It is calling on the company to allocate a total of around $800 million for share repurchases in 2024 and 2025 with repurchases front-loaded in 2024 to take advantage of the stock undervaluation.
