(Calgary) Suncor Energy said Monday it has reached an agreement with activist investor Elliott Investment Management that will allow it to undertake a strategic review of its downstream retail business with the goal of “increasing shareholder value.” “.
Posted at 1:24 p.m.
The deal will also see three new independent directors join the company’s board.
The new board members are former BHP Billiton executive Ian Ashby, former Devon Canada chairman Chris Seasons and former Talisman Energy executive Jackie Sheppard.
“Suncor is committed to continually renewing its Board of Directors to ensure we retain diverse and qualified directors who are responsible for overseeing corporate strategy and delivering shareholder value,” said Michael Wilson, Director of the board, in a press release.
“Furthermore, the board’s review of retail operations builds on our long-term commitment to openly considering options to enhance shareholder value and will help ensure the business is doing well.” position for even greater success and value creation in the future. »
Elliott had expressed frustration in April over what it considered to be a recent decline in the energy producer’s performance.
“We appreciate the collaborative dialogue we have had with Suncor’s Board and fully support the appointment of three new independent directors who will bring fresh and relevant perspectives to the boardroom, as well as the Board’s commitment to exploring strategic options regarding Suncor’s retail operations,” Elliott partner John Pike and portfolio manager Mike Tomkins said in a statement.
The review of Suncor’s retail business, which includes Petro‑Canada and its network of gas stations, will look at a range of options, including a potential sale of the business.
Suncor chief executive Mark Little resigned earlier this month, a day after news broke of the death of a contractor at its mine north of Fort McMurray, Alta. It was the latest in a string of workplace fatalities and safety incidents that have plagued the energy giant.
Kris Smith, senior vice president of Suncor’s downstream business division, has been named interim CEO.
Two of the new directors will sit on the committee the board formed to conduct a global search to select the company’s next CEO.
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