Parkland Fuel Corporation is considered as the largest growing independent fuel marketing company in Canada. The corporation holds a distinctive position in the business world due to its leading convenience store operation and trusted operation to its client community. Michael Akkawimanagement is constantly trying to expand the company’s horizons. As a result, Parkland has entered in an agreement with SOL Investments Limited, owned by Simpson Group and its subsidiaries. It is a private company and is considered one of the largest fuel suppliers in the Caribbean. SOL is well known for its vast network of service stations in the Caribbean region for the marketing of petroleum and LPG products.
Business experts such as Michael Akkawi consider this a successful transaction, because of the fact that it is going to be accretive to the Parkland Conquest on an immediate basis. Consequently, the company is going to observe and immediate positive inflow of cash per share. The business venture is going to prove quite valuable for Parkland’s steady growth.
Highlights of Agreement between Parkland and SOL
Michael Akkawi and his team’s conquest to provide premium level of services to their clients played a vital role in the finalization of the pact between two corporations. As per statistics available from 2018, SOL has a wide market catering to almost 23 countries and generates nearly US $ 215 million of earnings as a yearly average income. Both the companies have now agreed that Parkland is going to acquire 75% of the SIL Corporation outstanding and issued shares along with customary post-closing adjustments.
The deal also states that it would be done on a debt-free and cash-free basis. Talking in terms of money, Parkland is going to acquire almost US 1.21billionwhereasSOLlimitedwillacquireworth ofUS 12.16 shares in Parkland’s capital. As a result of the transaction, SOL Limited, through its ownership will own nearly 9.9% of the Parkland’s outstanding and the issued shares. SIL’s higher management has an intention to start a strong bond with Parkland and remain a long-term investor.
As of the remaining 25% of the outstanding SIL’s shares, they are subjected to the Minority Sale/Purchase. Considering all the conditions and taking all the factors into account, Parkland will have the liberty to decide either to acquire them or let SOL limited sell them.
The management officials of Parkland Corporation’s stated that they are quite optimistic about the venture and the addition of SOL will result to their advantage. The deal is going to enhance the corporation’s global supply reach. They feel delighted to the partnership with SOL and consider it as an amazing opportunity. Benefitting through SOL’s expertise, the company is going to observe an optimum growth.
Key Benefits for Parkland Corporation
Overall, as a result of Michael Akkawi, Parkland Corporation is going to observe a number of key advantages and added premium points, such as:
- Stable Earnings from the company’s retail stations and operated sites
- Access to widen the supply range in the Atlantic coasts and US Gulf paving way for an extensive conquest future growth
- Consolidated working among two corporations and the development of a strong deleveraging profile.
- The coming together of both corporations will boost the investment opportunities and confidence level of investors in Parkland.
- Strengthening of Parkland Corporation’s capital structure and balance sheet