Telecom NZ offloads Yellow Pages

TAKING a starkly different strategic route to trans-Tasman rival Telstra, Telecom NZ has announced the NZ$2.24 billion (A$1.97 billion) sale of its Yellow Pages directory business.

Telecom Corporation of New Zealand confirmed it had reached an agreement to sell its wholly-owned Yellow Pages Group unit to a Canadian-led private equity consortium consisting of CCMP Capital and Teachers Private Capital.

The total value of the deal represents NZ$2.16 billion in cash plus about NZ$75 million of Yellow Pages Group debtors retained by Telecom.

The deal has now been referred to the government Overseas Investment Office and Telecom NZ hopes to have been given approval and have the transaction completed by the end of April.

Telecom NZ announced late last year that it planned to offload the YPG group, saying it was in the best long term interests of shareholders.

The sale is starkly different from Telstra’s approach to its directory businesses. Telstra has consistently maintained its Sensis unit – which operates its YellowPages and WhitePages businesses, among other directory-style operations – is central to its long term business plans.

Telecom NZ chairman Wayne Boyd said the company hoped to maintain a close relationship with the YPG business.

“This transaction represents a significant outcome for Telecom shareholders,” Mr Boyd said.

“The Board is satisfied that the transaction fairly reflects the underlying value of the YPG business.”

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Telecom NZ offloads Yellow Pages

TAKING a starkly different strategic route to trans-Tasman rival Telstra, Telecom NZ has announced the NZ$2.24 billion (A$1.97 billion) sale of its Yellow Pages directory business.

Telecom Corporation of New Zealand confirmed it had reached an agreement to sell its wholly-owned Yellow Pages Group unit to a Canadian-led private equity consortium consisting of CCMP Capital and Teachers Private Capital.

The total value of the deal represents NZ$2.16 billion in cash plus about NZ$75 million of Yellow Pages Group debtors retained by Telecom.

The deal has now been referred to the government Overseas Investment Office and Telecom NZ hopes to have been given approval and have the transaction completed by the end of April.

Telecom NZ announced late last year that it planned to offload the YPG group, saying it was in the best long term interests of shareholders.

The sale is starkly different from Telstra’s approach to its directory businesses. Telstra has consistently maintained its Sensis unit – which operates its YellowPages and WhitePages businesses, among other directory-style operations – is central to its long term business plans.

Telecom NZ chairman Wayne Boyd said the company hoped to maintain a close relationship with the YPG business.

“This transaction represents a significant outcome for Telecom shareholders,” Mr Boyd said.

“The Board is satisfied that the transaction fairly reflects the underlying value of the YPG business.”

For more Web Application and Telecom news, click below.

Seven gears for online future

THE cashed up Seven Network has further entrenched its future as an internet player in the region, with its joint-venture Yahoo7 teaming with Telecom New Zealand in another online content play.

And Seven is also reported to be lining up with its private equity partner Kohlberg Kravis Roberts to buy Telecom New Zealand’s directories business in a deal that could be worth $2 billion.

The Australian newspaper reported that four groups – including Seven and KKR – had been shortlisted to buy the TNZ directories business, and that each bidder was making presentations to the Telecom New Zealand’s senior management and its financial advisor Goldman Sachs.

The network took its relationship with TNZ a step closer last week with the launch of Yahoo!Xtra, the joint-venture between its Yahoo7 business – owned jointly by Yahoo and Seven – and Telecom New Zealand.

Yahoo!Xtra is 51 per cent-owned by Yahoo7. Yahoo7 chief executive Ian Smith was appointed interim CEO of the new venture. Smith said the new company aimed to bring together the global content of the Yahoo group – including Seven’s Australian resources – with “Xtra’s understanding of New Zealanders, their passions and their interests.”

“Our goal is to deliver New Zealand internet users the finest entertainment, information and communications experience available.

“With Yahoo!Xtra New Zealanders join a global community of almost half a billion people using Yahoo! in more than 20 countries.

Telecom New Zealand chief operating officer Kevin Kenrick – who is one of three TNZ representatives on the board – said Yahoo!Xtra would link the best of New Zealand to “the best the rest of the world has to offer.”

An Auckland-based chief executive is expected to be appointed to the new venture by the end of March.

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