Court action has been initiated in Canada as a business dispute between Simpson Oil Ltd and Parkland Corporation escalates.
Simpson Oil, the group founded by Barbadian business mogul Sir Kyffin Simpson, has filed a lawsuit in the Ontario Superior Court of Justice to get clarity on the status of a now contentious January 8, 2019 governance agreement with Parkland.
However, Parkland says it is “surprised and disappointed” by Simpson Oil’s application, asserting that the move comes “in the midst of Parkland’s ongoing, good faith efforts aimed at resolving its differences” with Simpson Oil.
The disputed governance agreement relates to when Parkland acquired 75 per cent of fuel retailer Sol from Simpson Oil for about $2.3 billion.
Three years later, Parkland secured the remaining 25 per cent of Sol by issuing 20 million of its common shares worth $591.2 million to Simpson Oil. This means that Simpson Oil is Parkland’s single largest shareholder, owning 34.4 million shares – 19.78 per cent. (SC)
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