99 AGL Energy Limited Annual Report 2011 Note 42 – Acquisition of subsidiaries and businesses 2011 Acquisition of Mosaic Oil NL On 14 July 2010, AGL Energy Limited (AGL) and Mosaic Oil NL (Mosaic) entered into a Scheme Implementation Deed, under which AGL  proposed to acquire all of the issued shares in Mosaic by way of a Scheme of Arrangement (Scheme). Under the Scheme, Mosaic  shareholders could elect to receive either $0.15 cash per Mosaic share or 1.01 AGL shares for every 100 Mosaic shares. The Scheme was implemented on 20 October 2010, on which date AGL acquired 100% of the voting shares in Mosaic and obtained control.  The consideration paid was $142.6 million, and comprised an issue of equity instruments and cash. The fair value of shares issued was  determined using the published price at the date of exchange. 6,984,172 ordinary shares in AGL were issued on 20 October 2010 at a  closing price of $16.61. Mosaic’s principal activities are the production of, and development and exploration for, oil and gas. Mosaic’s main producing assets are  located in the Surat-Bowen Basin in south-east Queensland. Mosaic operates fields and discoveries in 10 petroleum leases, owns and  operates the Silver Springs processing facility, and now owns 100% of the Wallumbilla LPG plant and associated pipeline. Mosaic holds  varying interests in exploration permits in the Surat-Bowen Basin, Cooper-Eromanga Basin south-west Queensland and New Zealand’s  Taranaki Basin. Mosaic also has a 33.3% interest in an oil storage tank and unloading facility at Lytton in Brisbane. AGL carried out a comprehensive review of Mosaic’s businesses and assets to determine which are core and non-core to AGL’s integrated  energy strategy going forward. AGL has disposed of Mosaic’s interest in the exploration permit in the Carnarvon Basin offshore Western  Australia and is in the process of selling Mosaic’s interests in the exploration permits in New Zealand’s Taranaki Basin. AGL is currently developing a gas storage facility at Mosaic’s depleted Silver Springs/Renlim gas fields in the Surat Basin. Acquisition-related costs amounting to $3.5 million have been excluded from the consideration paid and have been recognised as an  expense in the period, within the ‘other expenses’ line item in the income statement. From the date of acquisition, Mosaic has contributed $9.3 million to the revenue and a loss of $0.7 million to the profit before tax of the  consolidated entity. It is considered impracticable to estimate what the revenue and profit before tax of the consolidated entity would have  been if the Mosaic acquisition had been effected at 1 July 2010. The fair value of the identifiable assets acquired and liabilities assumed at the date of acquisition were as follows: Mosaic Oil 2011 Net assets acquired  $m Assets Cash and cash equivalents  21.5 Trade and other receivables  5.9 Inventories  2.9 Other assets  0.9 Exploration and evaluation assets  19.8 Oil and gas assets  104.5 Property, plant and equipment  8.4 Deferred tax assets  23.9 Liabilities Trade and other payables  (2.8) Borrowings  (0.3) Provisions  (10.3) Deferred tax liabilities  (31.4) Other liabilities  (0.4) Fair value of identifiable net assets  142.6 Goodwill arising on acquisition  – 142.6 Consideration transferred Fair value of shares issued  116.0 Consideration paid in cash  26.6 142.6