Mullen Transportation Inc. says that its board of directors has formally approved a reorganization of Mullen to spin out its web-enabled e-business and third party logistics business to company shareholders. The company anticipates that the transaction will be completed by June 1, 2001.
Under the proposed reorganization, Mullen will be divided into two separate public corporations, which will be named Mullen Transportation Inc. and Moveitonline Inc.
Mullen will continue to own the asset-based oilfield services and non-asset-based third party logistics business. Each shareholder of Mullen will receive one share in Mullen and one share in Moveitonline in exchange for its current share of Mullen.
The board of directors of Mullen believes that the separation will enhance the ability of both corporations to pursue their independent strategies for an increased management focus on the growth and profitability of their respective businesses.
“Our view is that we are in early stages of understanding the real power of the Internet. Nearly three years ago we started the process of introducing the Internet throughout our organization and during this time we have developed an in-depth understanding of how the Internet can change business processes, especially as it applies to the supply chain,” says Murray Mullen, president and CEO of Mullen.
Completion of the transaction is subject to a number of conditions, including shareholder approval, regulatory authorization, a favourable tax ruling from Canada Customs and court approval.
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