Mullen moves in on Pe Ben

ALDERSYDE, Alta. — Alberta for-hire, and oilfield services trucking giant Mullen Group intends to issue a takeover bid for Pe Ben Oilfield Services in Edmonton.

Mullen intends to make an offer to aquire all the outstanding shares of the oilfield and pipeline services firm. Mullen currently owns about 10 percent of shares in Pe Ben.

Mullen President and CEO Stephen H. Lockwood admits his company have not yet been able to coordinate a meeting with the Board of Pe Ben to discuss the deal initiative but is “optimistic that a meaningful dialogue with them will commence shortly.” The offer and related documents will be mailed to Pe Ben shareholders next week, he says.

“The trust conversion process we undertook during the first half of 2005 caused us to closely examine all of our operating and non-operating assets, including our approximate 10 percent share position in Pe Ben. With the trust conversion now behind us we believe the time is right to add Pe Ben to the Mullen Group,”
Lockwood said.

Mullen intends to offer Pe Ben shareholders $12.00 in cash for each share, which represents a premium of approximately 28 percent, the company says.

Mullen has purchased several oilfield services and drilling companies over the last year.

In August, Pe Ben acquired KED Oilfield Services, which specializes in the transportation, material handling and storage of oil country tubular products, along with pile driving services and pile pipe sales. The company has 20 specialized oilfield power units, 56 oilfield transport trailers, 5 light vehicles, miscellaneous equipment and pipe inventory.