Australian incumbent Telstra has agreed to sell a 70% stake in its directories business Sensis to US private equity firm Platinum Equity for A$454m (US$411m).
The deal values Sensis at A$649m (US$587.5m). Telstra will hold on to its remaining 30%…
Australian incumbent Telstra has agreed to sell a 70% stake in its directories business Sensis to US private equity firm Platinum Equity for A$454m (US$411m).
The deal values Sensis at A$649m (US$587.5m). Telstra will hold on to its remaining 30% stake.
Commenting on the transaction in a statement, Telstra CEO David Thodey said he expects the partnership between the two companies to “maximise the value of the Sensis asset for Telstra shareholder”.
“We have spent the last two years enhancing our print directories business with a rich set of digital directory offerings.
“To drive further momentum, we believe it is the appropriate time to introduce Platinum Equity, as a strategic partner,” Thodey added.
Telstra said that the transaction price is equal to a multiple of 2.4x Sensis’ financial year 2014 forecast EBITDA “after adjusting for the voice directories business (which is being retained by Telstra) and standalone costs of operating the business”.
The incumbent expects to book an accounting loss on Sensis of about A$150m (US$136m), subject to completion timing and adjustments.
This deal comes shortly after Telstra has agreed to sell its stake Hong Kong mobile operator CSL back to the owner of smaller rival HKT for A$2bn (US$1.85bn).
Thodey said in December that “there are a number of dynamics in the Hong Kong mobile market that mean this is the right opportunity for Telstra to maximise our return on this successful asset”.
