Feeds

Telstra flogs phone books to Platinum Equity

Seventy per cent of a dead tree worth $AU450M

Boost IT visibility and business value

Mere days after Telstra was rumoured to be selling its Sensis directory division for “as much as $AU3 billion” the carrier has closed the deal for the fire-sale price of $AU450 million.

The sale puts 70 per cent of Sensis in the hands of US private equity firm Platinum Equity – putting a total valuation on the division at around $AU643 million, a little over one-fifth the number that was so sweatily speculated upon as late as January 10.

Among its many deals, Platinum Equity has been the white knight for CheckPoint Systems, and late last year, it acquired 51 per cent of Emerson Network Power's embedded systems business.

The Sydney Morning Herald says the sale will be subject to scrutiny from the Communications Minister Malcolm Turnbull, to ensure it continues to meet its obligation to distribute printed directories.

Since a peak in 2009 of $AU2.25 billion, Sensis' revenue has collapsed, shedding more than a billion dollars annually.

Telstra will retain ownership of its voice directory services business.

In its announcement, Telstra states that “The transaction price is equal to a multiple of 2.4 times Sensis’ FY14 forecast EBITDA after adjusting for the voice directories business (which is being retained by Telstra) and stand alone costs of operating the business. This is consistent with valuations for recent directories transactions globally.

“The sale proceeds of A$454million are incremental to Telstra’s FY14 free cashflow guidance of A$4.6billion to A$5.1billion. Telstra expects to book an accounting loss on Sensis of approximately A$150million subject to completion timing and adjustments. Approximately A$100million is expected to be included in the December 2013 half year results with the balance accounted for on completion, which is expected in the second half of FY14.” ®

Maximizing your infrastructure through virtualization

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.