AGL takes new tilt at telco with $27.5m Southern Phone Company bid

AGL Energy has returned to the telco market with a $27.5m bid for regional telco Southern Phone Company.

AGL CEO Brett Redman. Picture: Supplied.

AGL Energy has returned to the telco market with Australia’s largest electricity generator lobbing a $27.5m bid for regional telco Southern Phone Company.

The conditional agreement, if successful, will see AGL gain a customer base of 100,000, with AGL saying the acquisition is part of its strategic agenda to capitalise on the ongoing convergence of energy and data.

The offer, if accepted, would see the acquisition of all issued capital of SPC, from its current 35 local council shareholders. AGL will maintain the SPC’s business operations, brand and regional product offerings.

AGL boss Brett Redman said the acquisition offers a range of opportunities for our 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 in a statement on Wednesday.

“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 believe the acquisition, as part of our broader strategy, will create significant value for our connected customers and also for our shareholders.”

“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,” Mr Redman added.

Located in Moruya, New South Wales, Southern Phone was established in 2002 and operates as an unlisted company.

More to come