AGL Energy Ltd (ASX:AGK) plans to poach customers from the New South Wales power retailers that its rival companies Origin Energy and TRUenergy spent billions to buy from the state government.
AGL says it pulled out of the bidding process for the privatisation of NSW electricity assets as the purchase price was too high.
Origin paid $2.3 billion for the retail arms of Integral Energy and Country Energy, while TRUenergy agreed to pay $2.04 billion for EnergyAustralia's retail business.
Instead, AGL plans to increase spending on organic customer acquisitions and aims to win an additional 400,000 to 500,000 customers over the next three years.
For the year ended 30 June 2010, AGL reported a net profit of $356 million.
AGK Price at posting:
$14.43 Sentiment: None Disclosure: Held
