AGL Energy Ltd is hoping to purchase Mosaic Oil NL. AGL is Australia’s largest energy retailer and it has offered an AUD $123 million conditional cash bid to the local junior Mosaic Oil Ltd. The offer values the shares in Mosaic at 15 cents while its last traded price was about 8 cents on Wednesday.
The 92 % premium caused the Mosaic shares to jump up by over 60% after Mosiac Oil company officials released the statement of the offer on Thursday. AGL has also sought a number of pre-bid acceptance agreements for Mosiac’s issued share capital.
As per Mosiac it is yet to consider the incomplete and non binding offer being made by Sydney based AGL and it looks forward to further discussions with them. Mosaic Oil even told its shareholders about taking no action with respect to their shares.
Mosaic is exploring areas of New Zealand for oil and gas. It has also sought to buy a 40% interest in the Cooper – Eromanga Basin in Queensland which has a high prospect of oil.