Mullen bids for Livingston International

CALGARY — The Mullen Group has made an all-stock rival bid for the logistics and customs brokerage firm, Livingston International Income Fund.

The offer for all outstanding units is worth about $300-million and trumps a cash offer by a consortium led by the Canada Pension Plan Investment Board.

The western trucking and oil services giant offered 0.566 of a share for each Livingston trust unit, making the offer worth about $8.77 — an increase from the $8 in cash (totalling 273-million) the CPPIB-led group offered.

"Our due diligence is now substantially complete and we hope to complete negotiations and execute a binding acquisition agreement with Livingston as soon as reasonably possible," stated Steve Lockwood, President and Co-CEO.

Added Murray Mullen, Chairman and CEO: "We have taken a keen interest in Livingston for quite some time, believing that a business combination … is a perfect match.

"The business of Livingston is an ideal fit with our trucking-logistics segment and its addition will provide significant opportunities to realize on both cost and service synergies."

The acquisition agreement will be subject to approval by two-thirds of Livingston’s unitholders.

If Mullen’s bid is accepted, current Livingston unitholders will hold about a 19 percent stake in the transport company.

Livingston’s trustees announced the CPPIB-led "acquisition" last month and recommended that unitholders accept the offer, but the Mullen offer could change things.

Mullen too was once an income trust, but converted to a corporation earlier this year.