Aust Power and Gas acquires 15,000 Victorian customers14:29,...

Aust Power and Gas acquires 15,000 Victorian customers
14:29, Friday, 6 July 2007

Sydney - Friday - July 6: (RWE Australian Business News) -
Australian Power and Gas Company Ltd (ASX code: APK) has acquired a
further 15,000 Victorian residential customers from a distressed sale.
This brings the total customer account base to around 45,000
since the start of sales in February.
Purchase price is $1 million with $750,000 payable now and the
balance due on December 30, subject to variations for customer losses.
This represents an acquisition cost under $67 per customer
account.
CEO Mr James Myatt said, "This transaction is the result of an
urgent sale and the price paid is at a significant discount to the
normal market.
"We see this as excellent value, and well under the $1000-plus
paid for customers in recent industry transactions.
"It is also less than what we would normally expect to pay
through our sales acquisition channels.”
The acquisition ensures Australian Power and Gas has sufficient
scale to be EBITDA-positive month on month when the 45,000 accounts are
fully active and excluding the costs of the ongoing new customer
acquisition program.