AGL Energy Ltd has gone on the takeover trail with a surprise play for small oil and gas explorer Mosaic Oil NL.
AGL said it was proposing to offer 15 cents a share cash for Mosaic, almost double the company’s Wednesday close of 7.8c.
AGL is also offering 1.01 of its shares for every 100 Mosaic shares, to be decided at the election of Mosaic shareholders.
Mosaic’s board said it will meet AGL to discuss the proposal in further detail and told shareholders to take no action in respect of their holdings.
AGL is proposing to make the big via a scheme of arrangement.
At 15c a share Mosaic is valued at $123.2 million.
Naturally, Mosaic shares rose strongly yesterday and finished up 5.2c, or 66.6% at 13c, 2c less than the offer.
AGL has said it has entered into a number of pre-bid acceptance agreements in respect of 12.8% of Mosaic’s issued share capital.
"AGL has entered into agreements with some of Mosaic’s largest shareholders to support a scheme or accept a takeover bid by AGL at the price of 15 cents per Mosaic share which has been proposed by AGL to Mosaic, AGL said.
"Those agreements are conditional on the Mosaic board agreeing prior to 14 July 2010 to unanimously recommend such a scheme or takeover bid. As a result of these agreements AGL now has a relevant interest of 12.8% of the shares on issue in Mosaic."
Mosaic told its shareholders they should take no action with respect to their shares.
In April Mosaic announced it was buying a 40 per cent interest in a large block of land located in the Cooper-Eromanga Basin in southwest Queensland that it said was highly prospective for oil.
Mosaic is also exploring areas of New Zealand for oil and gas.
Last month Mosaic announced the sale of its Papua New Guinea subsidiary for $US11 million ($A13.07 million) in cash to an undisclosed company.
But its likely these exploration interests could be sold, AGL wants Mosaic for its old Silver Springs gas field in Queensland which will be used to store gas that Queensland Gas is to produce and supply AGL.
The facility will be ready next year once the takeover is concluded.
AGL shares rose 29c or 2% to $14.99.
Hastie Group, the Sydney based air conditioning installer and engineering group says it has refinanced $154 million of debt and increased its bond lines by around $90 million to support continued growth in Australasia, the UK and the Middle East.
The debt facilities were due to mature next April and have been extended to July 2013, the company said in a statement yesterday.
The company said a major domestic bank was added to Hastie’s banking panel.
Chief executive David Harris said in the statement the refinance was oversubscribed by the banks.
"We were pleased with the refinancing which was achieved at market competitive terms and rates," he said.
Hastie’s five-year debt facilities set to mature in April 2013 remain in place on unchanged terms and rates.
Hastie shares rose half a cent, to $1.38.
Ports group and rail operator, Asciano Group has revealed another big coal contract as it seeks to build its presence in Queensland.
The company said yesterday that it had signed a 10 year $320 million agreement with a coal mining joint venture to move up to 3 million tonnes per year of coal in Queensland.
The contract was signed with Middlemount Coal Pty Ltd, a joint venture between local miner Macarthur Coal and Singapore’s Noble Group.
Asciano will start hauling the coal from January 1, 2012.
"This is a significant step in Asciano’s growth strategy," chief executive Mark Rowsthorn said in the statement.
"It demonstrates our ability to meet our customers’ needs in Queensland and places us in prime position to take advantage of further growth tonnages from coal producers who have committed to port capacity at Abbot Point."
Mr Rowsthorn said Asciano had secured over 45 million tonnes of coal haulage contracts in Queensland.
Asciano shares were unchanged on $1.62 yesterday.
And true to its promise last week, Leighton Holdings has confirmed major contract wins in India.
In a briefing last week CEO, Wal King indicated that Leighton was confident of winning the contracts.
Leighton told the ASX yesterday that the contracts were worth $US550 million ($653.5 million).
Leighton said that it had been awarded two infrastructure projects: the first the Chenani-Nashri road tunnel in Jammu, northern India; and the second the Vizag Port expansion.
Construction work on the 9km Chenani-Nashri tunnel – which will be one of the longest road tunnels in Asia – is valued at about $US500 million.
It will take about 54 months to complete, with work to start immediately.
Leighton construction work for the Vizag Port expansion is worth $US45 million, and work is expected to start in July and finish by mid-2012.
Leighton will widen the existing 350m general cargo berth by 21 metres for coal unloading, provide foundations for 2
