Yellow Media to sell unit to PE firm for about $745 million

(Reuters) – Media and marketing company Yellow Media Inc (YLO.TO: Quote, Profile, Research) said it will sell its unit Trader Corp to funds advised by private equity firm Apax Partners (APAX.UL: Quote, Profile, Research) for about $745 million in cash to focus on its core business.

“We want to focus our efforts on the acceleration of our digital transformation,” Yellow Media said in a statement.

Trader Corp, formed in June 2006, brings out about 160 publications and 22 websites on automotive, real estate, general merchandise and employment.

However, Yellow Media said the real estate, employment and businesses have been excluded from the proposed sale and will continue to be owned by Yellow Media.

Trader will continue to own and operate Canadian automotive and generalist online properties as well as retain its interest of about 30 percent in, the U.S. website for auto dealers.

London-based Apax Partners invests in telecommunications, information technology, retail and consumer products, media, healthcare, and financial and business services.

The proceeds from the sale will be mainly used to pay off debt, Quebec-based Yellow Media said.

The deal is expected to close in June.

TD Securities Inc and Morgan Stanley acted as financial advisers to Yellow Media.

Yellow Media shares, which have lost about 13 percent since the company reported fourth-quarter results on February 10, closed at C$5.29 on Thursday on the Toronto Stock Exchange.

(Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Unnikrishnan Nair)

Yellow Media to sell unit to PE firm for about $745 million