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WINNIPEG (CP) - Yellow Pages Group Co. (TSX:YLO.UN) has agreed to pay $281 million, including assumed liabilities, for MTS Allstream's (TSX:MBT) directories business.
MTS publishes 11 White Pages and Yellow Pages directories across Manitoba and operates the www.mtsyellowpages.com directory advertising portal.
The directory business has total annual revenue of about $42 million, including inter-company services, Winnipeg-based MTS said Monday.
"Our directory business is performing strongly, but as a publishing enterprise it is outside the scope of our core telecommunications franchise," Pierre Blouin, CEO of MTS Allstream, said in a release.
"With this transaction we are maximizing the value of this asset and sharpening MTS Allstream's focus on opportunities in our core consumer markets and enterprise solutions businesses, while ensuring the directory publishing operation is well positioned to continue to provide excellent service going forward."
In a long-term agreement, Yellow Pages Group will continue to publish White Pages directories in Manitoba on behalf of MTS Allstream. Also, Yellow Pages Group will offer employment to all MTS Allstream directory employees.
The transaction is subject to customary conditions, including approval by the federal Competition Bureau.
Montreal-based Yellow Pages Income Fund indirectly holds a 96 per cent ownership interest in Yellow Pages Group and Trader Corp. Yellow Pages Group is Canada's largest telephone directories publisher with more than 330 Yellow Pages and residential directories.
The company also owns and manages online directories YellowPages.ca and Canada411.ca, as well as CanadaPlus.ca, a network of seven local city sites.
Trader Corp. has about 200 publications and 20 websites covering four markets: automotive, real estate, general merchandise and employment. Its main brands include Auto Trader, Auto Hebdo, The Bargain Finder, Buy&Sell, Renters News and Home Renters' Guide.
© The Canadian Press, 2006
