Suncor Shares Rise After Deal with Elliott Investment to Add Three New Independent Directors

By Adriano Marchese

Suncor Energy Inc. shares rose in early trading Monday after the company said it agreed with Elliott Investment Management L.P. to appoint three new independent directors to help find a new chief executive officer and review the company's downstream retail business.

At 9:54 a.m. ET, the company's Toronto-listed shares were trading 3.8% higher at C$40.83.

The Canadian integrated energy company said it will welcome former president of BHP Group Ltd.'s iron ore customer sector group, Ian Ashby, as well as Chris Seasons who was previously president of Devon Canada and partner with ARC Financial Corp. It has also appointed Jackie Sheppard, a former executive vice president of corporate and legal affairs at Talisman Energy Inc.

Suncor said that newly-appointed Mr. Seasons and Ms. Sheppard will oversee the search for the company's next CEO.

Additionally, Suncor said it will form a new committee to oversee a strategic review of the downstream retail business, which could include its sale.

It said it expects to have the committee's recommendation in the fourth quarter.

"These actions build on Suncor's ongoing efforts to enhance safety, reliability and operational excellence and to restore Suncor's industry leadership," the company said.

With the new additions, Suncor's board will temporarily expand to 13 independent directors until two existing directors retire by year-end.

Write to Adriano Marchese at [e-mail]

(END) Dow Jones Newswires

July 18, 2022 10:16 ET (14:16 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.