Dutch media group VNU has announced it is to sell its World Directories unit, which includes the Irish Golden Pages business.

The World Directories group is to be sold as a single entity, with a likely price in the region of €2.4 billion. The group was bought about six years ago for approximately €2 billion. VNU is to use the proceeds of the sale to reduce debt.

Eircom sold its 63 per cent stake in Golden Pages to VNU in May 2002 for €185 million. The Dutch group already owned the other 37 per cent. It was the first major divestment by Eircom after the company was acquired by Valentia, the consortium of venture capitalists led by Sir Anthony O'Reilly.

Golden Pages employs approximately 250 people. Its latest filed accounts, for the year to end December 2002, show a profit after tax of €17.98 million on a turnover of €66 million. This compared with a profit of €11 million the previous year.

VNU is one of the largest media research firms in the world with its ACNielsen brand. It said yesterday that it wanted to focus more on marketing, media measurement and business information activities.

Finance director Mr Frans Cremers told a conference with analysts that VNU planned to sell the World Directories unit in one go and that he hoped to conclude a deal by the end of the year. Chairman and chief executive Mr Rob van den Bergh said the company had had no talks yet with any potential buyers.

Sources said the business could be expected to sell for between €2.3 billion and €2.4 billion, based on a 10 times multiple of operating profits.

The World Directories group is the market leader in Belgium, the Netherlands, Ireland, Portugal, Romania, Puerto Rico and South Africa. It employs 2,200 people and had sales in 2003 of €492 million and operating profits of €211 million.

(Additional reporting, Reuters)