BCE Sells Canadian Directories to KKR

BCE Inc., Montreal, has sold most of its Bell Canada directories business to Kohlberg Kravis Roberts and the Teachers’ Merchant Bank for roughly $1.9 billion. BCE will use the sale proceeds to pay for part of the acquisition of SBC Communications’ minority interest in Bell Canada, as well as ongoing financial needs.

The properties purchased by KKR and Teachers’ include 209 print white and yellow pages, as well as the electronic yellowpages.ca, toll-free and Canada 411 directories. The properties generate roughly $590 million annually, largely from the sale of advertising.

The sale will leave KKR with 60% of the new company. Teachers’ will hold 30% and BCE will retain 10%.