The Yellow Pages Group has suspended its planned sale of the business, citing a satisfactory price as unattainable in the current economic situation. The owners of the New Zealand business said they had withdrawn their planned sell because they felt the business would not achieve what they termed “a satisfactory price” in the prevailing economic conditions.

The firm’s owners, Unitas Capital, based in Hong Kong but formerly known as CCMP Capital Asia, and Canada’s Ontario Teachers’ Pension Plan purchased the firm in 2007. Back then, the two firms paid 2.24 billion for the New Zealand Yellow Pages. Whereas a number of interested parties had shown great interest, the Yellow Pages Group shareholders, together with the banking syndicate decided to close the planned sell, said the firm Monday. The firm said it will not be pursuing the sell further.

According to the firm, the existing economic situation does not suit large scale merger and acquisition activity and subsequently, the expectations of the shareholders with regard to value are unlikely to be met in the current market. The banking syndicate would now continue with plans to restructure the company's debt, and planned to stick with the business long-term.

The move now means the owners of Yellow Pages Group have effectively suspended considerations for a potential buyer. As a result of the suspension, the banking syndicate will now look to complete its already advanced plans to restructure the debt and intend to take a long term view as owners of the business.

Yellow Pages’ Chief Executive Officer, Bruce Cotterill, said it was good to have some clarity after the uncertainty associated with the sale process and the related media speculation.  The banking syndicate has been working hard to achieve an outcome that will take Yellow Pages into the future, he added.  Yellow Pages Group is keen on working with the banking syndicate to finalize the debt restructure and move forward.

According to Cotterill, there are a number of extremely positive initiatives being developed within the company at present, which will ensure our success in the next few years. We are fortunate to have had a very supportive relationship with our banking syndicate who have enabled that to happen.

The Ontario Teachers' Pension Plan (OTPP), commonly referred to as Teachers', is the organization responsible for administering pensions for public school teachers of Ontario. The OTPP also invests the plan's pension fund, making it one of the largest and most powerful investment groups currently operating in Canada.

28 Sep 2010.