AGL Energy Limited (AGL) has announced it has entered into a conditional agreement to acquire one of Australia’s largest regional telecommunications businesses.
The offer, if accepted, would see the acquisition of all issued capital of Southern Phone Company Limited (SPC), from its current 35 local council shareholders for $27.5 million.
AGL intends to maintain SPC’s business operations, brand and unique product offerings focused on regional customers.
This agreement is subject to a number of conditions, including acceptance by SPC shareholders of AGL’s offer.
AGL CEO and Managing Director, Brett Redman, said the acquisition presents a range of exciting opportunities for residential and small business customers.
“AGL’s first step into the broadband and data sector, which is part of our growth strategy, builds on our strong regional presence as an energy retailer and SPC’s telecommunication services and capabilities,” Mr Redman said.
“The acquisition allows us to create space for new products and services that meet the needs of increasingly connected customers as energy and data converge.
“We are focused on responding to our customers’ evolving needs as we transform from a major energy retailer to a major, broader essential service provider.
“We believe the acquisition, as part of our broader strategy, will create significant value for our connected customers and also for our shareholders.”