Dividends and grants to local councils and the community will be a thing of the past if council shareholders vote to sell Southern Phone to AGL.
Eurobodalla Council’s General Manager has responded to the proposed sale of Southern Phone to AGL, saying councillors will consider the offer, most likely at the first Council meeting in November.
General manager, Catherine Dale said council's concern was to make sure local people working in the Moruya office kept their jobs. She said in a statement "I’m reassured by the company’s statement that the Southern Phone brand, products and team will be retained.” The company employs about 130 people at its Moruya headquarters.
The AGL offer is an all cash offer of $27.5 million for 100 per cent of the company. Eurobodalla Council says council stands to receive a return of $785,714 on their $2 investment. On its website Southern Phone says since 2008 it's delivered more that $15.8 million in dividends and grants for the benefit of regional communities.
Southern Phone general manager David Joss has said the Southern Phone Board unanimously recommends shareholders accept the AGL offer.
Dr Dale said the matter will considered by Eurobodalla councillors, most likely at the 12 November Council meeting.