Very interesting write up in today's AFR regarding AGL has been...

Very interesting write up in today's AFR regarding AGL has been running the numbers on Vocus for some months.
Really interesting commentary from AGL regarding convergance of data & energy, as relating to the consumer.

https://www.copyright link/business/energy/agl-energy-beaten-to-the-punch-at-vocus-group-20190523-p51qa6

Street Talk

AGL Energy beaten to the punch at Vocus Group

SarahThompson andAnthonyMacdonald

May 30, 2019 — 9.35pm

Swedish private equity firm EQT appears to have blown one of thecountry's biggest companies out of the water in the $3.3 billion battle forfibre network owner Vocus Group.

Street Talk can reveal utilitiesgiant AGL Energy was actively considering a step into the telecommunicationssector via the acquisition of Vocus Group, in what would have been chiefexecutive officer Brett Redman's first big strategic move since taking thereins at the start of this year.

It is understood AGL Energy had aninternal team running the numbers on Vocus Group for months and had retainedinvestment banking advisers including Deutsche Bank and Highbury Partnership toprovide advice.

AGL Energy boss Brett Redman hinted to investors at theMacquarie conference last month that he may be considering a move intotelecommunications.

Sources said Vocus Group - and itsadvisers UBS and Allens - was well aware of AGL Energy's interest and the twocompanies had held high level talks. AGL Energy was also provided some accessto diligence materials.

However, the talks were blown uplate last week when Swedish firm EQT arrived on the scene with a $5.25 a share indicative bid via its infrastructure investment arm. Vocus Group disclosed EQT's offer - after Street Talk's report that the company had received approaches - has taken EQT straight into due diligence on a non exclusive basis.

It is understood EQT's offer was above what AGL Energy had beenwilling to pay - and AGL Energy has put its pens down, for now at least. Theoffer valued Vocus Group at 11.5-times forecast EBITDA.

The utilities giant remainsinterested in Vocus Group, and knows that past private equity buyers havestruggled to turn indicative and conditional offers for the telecommunicationsinfrastructure owner into binding bids.

Vocus owns fibre networks inAustralia and New Zealand, which connect capital cities to New Zealand, theUnited States, Singapore and Hong Kong. It offers internet to enterprise,government, wholesale and residential customers, and has a portfolio of datacentres.

AGL Energy's surprising interestcomes only weeks after Redman hinted to fund managers that such a move could beat hand.

At the Macquarie equities conferenceon April 30, Redman told investors that the convergence of energy and datacreated "an opportunity for AGL Energy to position itself as a trusted andpreferred partner of the connected customer".

"Data plays an integral part inour day-to-day lives, much like traditional energy services," he toldinvestors.

"Customers increasingly expectand need a reliable provision of that service, again much like traditionalenergy service. As AGL wants to go where our customer is going, we willcontinue to evolve; from our core energy providing service to a multi-productprovider."

An AGL Energy spokesman did notreturn a call seeking comment.