about to have big run 2 billion in the kitty

26 March 2007
MEDIA RELEASE
Telecom Sells Yellow Pages Group for NZ$2.24 Billion
Telecom Corporation of New Zealand Limited (“Telecom”) today confirmed that it
has reached agreement to sell Telecom’s Yellow Pages Group (“YPG”) to a
private equity consortium consisting of CCMP Capital and Teachers’ Private
Capital, the private investment arm of the Ontario Teachers’ Pension Plan for
NZ$2.24 billion, including YPG receivables retained by Telecom.
The total value of NZ$2.24 billion represents NZ$2.165 billion cash settlement
plus approximately NZ$75 million of YPG debtors retained by Telecom.
In commenting on the sale, Telecom Chairman Wayne Boyd said “this
transaction represents a significant outcome for Telecom shareholders. The
Board is satisfied that the transaction fairly reflects the underlying value of the
YPG business. We thank all YPG employees for helping to build an outstanding
company over the years and we look forward to maintaining a close relationship
with YPG and its new owners into the future.”
It is Telecom’s expectation that the transaction will be completed by the end of
April subject to Overseas Investment Office approval and normal closing
conditions. Telecom will then be in a position to outline its capital management
plans in relation to the cash sale proceeds at its Third Quarter profit
announcement on Thursday 3rd May 2007.
Telecom was advised by Goldman Sachs JBWere.
ENDS
For inquiries please call:
Phil Love
Acting Public Affairs Manager
027 244 8496