AGL Energy Ltd. offered to acquire Australian regional telecom operator Southern Phone Co. Ltd. for A$27.5 million in cash, according to an Oct. 16 statement.
Under the conditional agreement, the utility company intends to buy all of Southern Phone's share capital from the latter's shareholders, namely 35 local councils. AGL would retain Southern Phone's business operations, brand and product roster if the deal pushes through.
Southern Phone's board unanimously recommended that the shareholders accept AGL's offer, which is also subject to other conditions.
AGL is on its second attempt to enter Australia's telecom sector, after backing out of a bid for Vocus Group Ltd.
Southern Phone offers fixed-line, mobile and internet communications services to 100,000 customers across regional Australia.