Activist investor Elliott Investment Management is calling for changes to Suncor Energy Inc.’s board of directors and demanding a review of the company’s executive leadership.
In a letter to Suncor’s board on Thursday, Elliott said shareholders have seen their investment lag behind nearly all large-cap North American oil and gas companies.
The U.S. investment manager, which said it has a 3.4% economic stake in Suncor, including equity and cash-settled derivative contracts, wants to add five new independent directors to Suncor’s board as part of a other significant changes.
“Our investment in Suncor is underpinned by our belief that with the right leadership, the company can restore its previous success,” Elliott partner John Pike and portfolio manager Mike Tomkins wrote in their letter.
“Suncor’s integrated oil sands operations are a vital part of the world’s energy supply, and we believe these assets are significantly undervalued.”
Pike and Tomkins said they looked forward to engaging with the board, as well as their fellow shareholders, and hoped to meet with the board as soon as possible.
As part of its plan, Elliott wants to overhaul Suncor’s operational and safety culture.
He also wants the company to explore opportunities to unlock asset value outside of its core oil sands business, including its retail operations.
Shares of Suncor rose $3.77 or about 9% to $45.92 in early trading on the Toronto Stock Exchange on Thursday.
This report from The Canadian Press was first published on April 28, 2022.