Dutch publisher VNU NV said it would pay €185 million to take full control of telephone directories business Golden Pages and issue new shares to finance the acquisition.
VNU currently has a 37% stake in the business, with the remainder owned by fixed-line operator Eircom. The publication of directories is one of VNU's three core units, together with market research and business media.
The Dutch firm said it would issue around €265 million of new shares, equal to around 3% of its issued share capital, to finance the Golden Pages deal, repay debt and for general corporate purposes.
VNU said it would pay a multiple of 11.2 times EBITA (earnings before interest, tax and amortisation) for Golden Pages, which had net revenues of €61.5 million in 2001 and employs around 280 people.
Eircom Chief Executive Philip Nolan said the company's decision to exit Golden Pages reflects its strategy to focus on the core fixed line business.
The transaction has been submitted for approval to the relevant Irish authorities.
