Canadian fuel distributor Parkland said on Wednesday it would sell its Canadian commercial propane business to Avenir Energy for about C$115 million ($84.00 million) in cash amid a push by investors for a strategic review of the company.
Parkland would also exclusively supply fuel to Avenir for 10 years as part of the agreement, the company added.
“This transaction is a big step toward achieving our target of C$500 million from the divestment of non-core assets by the end of 2025,” said Ian White, president of Parkland Canada.
Parkland’s largest shareholder Simpson Oil, which holds a 19.7% stake, had called for a review of strategic alternatives for the company in April, including a sale.
Later in the same month, activist investor Engine Capital backed Simpson Oil’s call.
Engine Capital did not immediately respond to a request for comment.
Source: Reuters.com