AGL takeover bid of Mosaic gets nod from independent assessment
Energy firm Mosaic Oil NL said on Thursday that PricewaterhouseCoopers Securities Ltd (PWC) had concluded that the acquisition proposal pushed forward by AGL Energy Ltd was wholly advantageous to the interests of the target shareholders.
The independent expert has reported that Mosaic shares' fair market value currently hovers between $0.128 and $0.197, which is within the range of AGL's 15 cents per security bid, prompting the PWC to affix its support on AGL's purchase bid for Mosaic.
Mosaic said that it has been advised by PWC that the scheme being forwarded by AGL appears to be "in the best interests of Mosaic's fully and partly paid shareholders on the basis that it is fair and reasonable."
The company added that the whole packaged dangled by AGL, including both the cash and scrip consideration offers were deemed by PWC as closely proximate to the valuation range and therefore fair.
Industry experts said that the planned acquisition by AGL Energy is in line with its strategic goal of establishing a gas storage plant in central Queensland, which happened to be one of the most attractive assets of Mosaic.
Following AGL's non-binding offer of paying 15 cents per Mosaic share or its equivalent of 1.01 AGL shares for every 100 Mosaic shares, the target company's board unanimously endorsed the AGL offer and entered into a scheme implementation deed with its suitor in July.