Yellow Pages sold in New Zealand

Telecom Corporation employs 6,000 staff in New Zealand

New Zealand's Telecom Corporation has agreed to sell its Yellow Pages directory business to a private equity group for NZ $2.24bn ($1.59bn; £811m).

The business produces more than six million directories a year and employs about 600 staff.

It is being bought by CCMP Capital Asia and Teachers' Private Capital, which invests in assets for the Ontario teachers pension fund in Canada.

Yellow Pages has recently branched out, buying tourism and retirement guides.

'Significant outcome'

The deal is due to be completed by the end of next month.

"This transaction represents a significant outcome for Telecom shareholders," said Wayne Boyd, chairman of Telecom Corporation.

"The board is satisfied that the transaction fairly represents the underlying value of the Yellow Pages business."

Telecom Corporation is one of New Zealand's largest businesses, employing more than 8,500 staff across Australasia.