NZ Telecom entertains Yellow Pages sell-off

New Zealand Telecom is considering the public listing or private sale of its Yellow Pages Group as part of a review into the future of the business unit.

The review of the group - which also includes its White Pages and online directories businesses - was prompted by significant changes in the online media and local search markets, Telecom CFO Marko Bogoievski said.

In an ASX statement Bogoievski said the telco was also looking toward future alliances with global players as part of the review. To date progress had been made negotiating new commercial arrangements with a global online and search player.

The successful negotiation of these arrangements would leave Telecom well positioned as an integrated communications, messaging and search player, Bogoievski said.

He argued the group’s print and media business was currently in good financial shape, expecting to generate an EBITDA of NZ$160 million for the current financial year.

Telecom expected the review of the group to be complete by October with a formal announcement to the market to follow in early November.