Sydney-based AJ Lucas Group has confirmed media speculation that a recent non-binding takeover offer for its drilling division came from Mitchell Services.
AJ Lucas subsidiary Lucas Drilling focuses on various project sectors including coal mining exploration, oil & gas (particularly coal seam gas and shale gas), engineering & steering, and water (including well services).
In Australia, the company mainly focuses on east coast coal operations in Queensland and New South Wales, with offices in Brisbane and Sydney and workshops in Moranbah and Wyong.
AJ Lucas announced via the ASX yesterday that it had received the indicative proposal and had appointed a financial adviser and legal adviser to help conduct a strategic review, though it did not name the company behind the offer at the time.
Media outlets such as The Australian and Australian Financial Review speculatively listed the company as Mitchell Services, however, hastening Lucas’s response today.
Queensland-based Mitchell is a major drilling services provider with global operations with a market cap of $85 million (AJ Lucas holds a total market cap of $308 million).
The AJ Lucas board reiterated in today’s statement that shareholders do not need to take action.