Telecom To Look At Yellow Pages Options

Telecom To Look At Yellow Pages Options

Telecom today confirmed that it will undertake a scoping study to assess future options around its Yellow Pages Group ("YPG") which includes Yellow Pages, White Pages and other printed and on-line directories businesses managed by YPG.

The review will examine potential alternatives including partial or full sale to trade or financial buyers, or a public listing.

All options, including retaining the business, will be canvassed.

Telecom’s Chief Financial Officer Marko Bogoievski said that significant changes are occurring in the online media and local search marketplace and it is a good time to look at future alliances with global players and to re-examine options for our Yellow Pages business.

“We have made good progress negotiating new commercial arrangements with a global online and search player and expect to be well positioned in the integrated communications, messaging and search space in the future. If Telecom goes ahead with any sale of the business, we would expect to have a comprehensive set of ongoing commercial arrangements with YPG in order to facilitate continued strong growth of Telecom’s online properties.

“The Yellow Pages Group is a very successful print and media business that expects to generate EBITDA in excess of NZ$160 million for the year ending 30 June 2007,” Mr Bogoievski said.

“Recent transactions of other directories businesses internationally suggest that a sale could deliver significant value to the Group.”

Telecom expects the scoping study to be completed by late October and intends to provide an update to the market at the Q1 results announcement in early November.

ENDS

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