AGL Energy is all set to acquire oil and gas explorer Mosaic Oil NL for $130 million and according to the joint statement released by both companies on Wednesday, Mosaic's board unanimously pushed for the AGL offer in which the bidder dangled 15 cents per share or 1.01 AGL share on every 100 fully paid Mosaic stocks.

The statement said that the 15 cents offer is reflective of a premium 92 percent on Mosaic's closing price of 7.8 cents on June 30, a day prior to the target's announcement of AGL's bid which showed marked improvement from its earlier proposal.

The two company's earlier agreement enabled Mosaic to conduct negotiations and entertain rival proposals until August 4 when exclusivity provisions would have lapsed and after which, a break fee of $1.3 million could be collected by AGL in the event that Mosaic was able to finalised a competing proposal.

In formalising the takeover deal, Mosaic chairman David Herlihy praised the AGL bid as adequate and reflective of the true value of the portfolio and gas assets amassed by the company from its several years of operations.

Mr Herlihy added that part of the package is "Mosaic shareholders' eligibility for capital gains tax rollover relief if they choose the AGL scrip alternative."

He said that in the absence of any superior proposal, all Mosaic directors would give their approval on the agreement and company shareholders should receive their information booklet by early September, in time for the anticipated shareholders gathering presumably in October.

Mr Herlihy said that the agreement would be submitted to an independent expert for the requisite approval.

As of 1308 AEST on Wednesday, Mosaic stocks were trading at 14 cents, gaining by 0.5 cent or 3.7 percent while AGL shares were trading at $14.81, losing about six cents of its value from the previous trading day.