Parkland Corporation has initiated the final stage of the Sunoco merger process by sending a letter of transmittal to its shareholders. This document allows those who have shares registered in their name to choose how they wish to receive payment for their shares under the acquisition agreement.
Context of the agreement between Parkland and Sunoco
The agreement between Parkland and Sunoco was announced on May 5, 2025. It involves a structured cash and share transaction approved by Canadian courts under the Alberta Business Corporations Act. Sunoco, through an acquiring entity, will acquire all of the outstanding shares of Parkland, consolidating its presence in the energy sector in the Americas.
What options do shareholders have to receive payment?
Parkland shareholders can choose between three different ways to receive the consideration for each share of common stock they own:
- C$44 in cash per share.
- Approximately 0.536 common units of SunocoCorp, which will be listed on the New York Stock Exchange (NYSE) once the deal closes.
- A combination of C$19.80 in cash plus 0.295 SunocoCorp units.
The first two options are subject to proration, i.e., they may be adjusted if demand exceeds certain established limits. If a shareholder does not choose any option or does not correctly complete the form, he/she will be automatically assigned the third option: the combination of cash and shares.
This form is intended exclusively for shareholders of record, i.e., those who hold their shares directly in their name. To make your election, you must complete the letter of transmittal and deliver it to the designated agent: Computershare Investor Services Inc.
On the other hand, those who hold shares through intermediaries such as banks, stockbrokers or fiduciary agents must contact those intermediaries directly for specific instructions, as they have their own procedures and deadlines.
Deadline
Parkland will officially announce the deadline for submitting documentation prior to the final closing of the deal. This provides additional time for shareholders to consider the tax implications, its financial strategy and expectations about Sunoco’s future market performance.
The choice of payment method allows each shareholder to tailor their strategy according to their needs: some may prefer immediate cash liquidity, while others may bet on the growth of Sunoco shares once they begin trading on the NYSE. The combined option seeks to balance both possibilities.
As individual decisions may have significant tax and financial consequences, it is recommended that shareholders consult with professional advisors and keep an eye on Parkland’s upcoming announcements, both on its official website and on its profile on SEDAR+, the Canadian regulatory platform.
Fuente: Parkland Corporation
Foto: shutterstock
