AGL makes $27.5m offer for regional telco

AGL Energy has offered to buy telecommunications provider Southern Phone Company Limited for $27.5 million, four months after the power generator and retailer walked away from a second attempt to acquire Vocus.

AGL on Wednesday said the deal was part of a shift towards becoming a broader service provider.

“The proposal is part of AGL’s plans to pursue growth in the convergence of energy and data,” the company said in a statement.

The firm this year made and backed out of two separate takeover attempts for larger telecom firm Vocus.

AGL said it would maintain Southern’s brand and operations.

The offer is subject to being approved by the telecom company’s shareholders.

Southern Phone did not immediately respond to an email seeking a comment.

AGL’s shares were trading about 0.2 per cent higher against the backdrop of an overall 0.9 per cent rise for the broader market.

AAP

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