Ann: Non-binding Indicative Proposal from AGL for Vocus, page-14

I've been a long term holder for Vocus for a while and have been watching the various bids for the company closely. TBH I don't think AGL's bid for Vocus is that crazy.

Telecommunications in my opinion is a essential service (utility) like electricity, gas and water and should be treated like it. Think about when you move home, it's always on of the things that you need to disconnect / reconnect as well.

I realise that home Internet is not Vocus' primary focus but I can see how AGL could use the data centers and dark fibre to compliment their business.

It's a gamble since not many energy companies have done this, but unlike private equity they want to grow the business - not carve it up. In order for any company to grow they need to look at new revenue options.

Vocus management clearly know that it will still take a few years to turn the company around but they seem confident that it will happen. They have kind of indicated they want to go it alone but have the entertain these takeover bids in the interest of shareholders.

It makes sense that a big company like AGL buys Vocus now at a low price, knowing that in 3-5 years it will probably by profitable.

I'd be interested in other people's thoughts.