Parkland Corporation shares are higher Wednesday after an activist investor called for the company to sell off its Burnaby, British Columbia refinery.
Engine Capital LP wants the company to explore strategic alternatives for the company's “non-core assets” and focus on its fuel and convenience store business, according to a letter written to the company’s board of directors.
The US investment firm owns a 2% stake in the Calgary-based company and is seeking a meeting with the board, the letter said.
Parkland owns a series of gas stations in Burnaby along with its refinery. Selling the refinery is a lever to create meaningful shareholder value, the letter said.
Engine Capital believes Parkland shares could be valued at $45. On Wednesday afternoon, the stock traded nearly 10% higher at $32.03.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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