Winnipeg Free Press

Winnipeg Free Press (Newspaper) - August 15, 2006, Winnipeg, Manitoba B business editor Steve Pona 697 7292 business free press. My. Ca i Market details b5 i Winnipeg repress. Com i b 4 tuesday August 15, 2006 Dow 11,097.87 9.84 a p tax 11,850.16 94.74 Nash a 2,069.04 11.33. Dollar 88.77 � u. S. 0.22 � u. S. Oil $ 73.53 barrel $ 0.82 barrel. Gold $ 639.30 Troy of $ 5.10 Troy of co by Geoff Kirbyson m to Al Stream is getting out of the directories business. The Winnipeg based Telco has signed a Deal to sell its its Media division to the yellow pages group co. For $ 281 million including $ 275 million in Cash. Kelvin Shepherd president of it Sis consumer markets division said the decision to divest the directories business was made As part of the company is ongoing review of its operations which began last november and is expected to wind up before the end of the year. Its a non Core asset he said in an interview yesterday. Although its a Nice Little business a Good performer and Well run it just Isnit Central to our strategy going Forward. Its publishes 11 different White pages and yellow pages directories across the province. It also operates the wow. . Com directory advertising Portal. Under the terms of the Deal which is expected to close prior to year end mpg will offer employment to All 107 its Media employees and it will continue to publish the White pages directories in Manitoba on behalf of its. Mpg will also sublease its medias office space at 136 Market ave. In 2005, its Media generated revenues and Bitda earnings before interest taxes depreciation and amortization of about $ 42 million and $ 23 million respectively. Iain Grant managing director of the Seaboard group a Montreal based telecommunications consulting firm said its is following Many other Tel cos including Bell Canada and Verizon communications the second largest phone company in the United states that have sold off their directories businesses. This is a predictable move and its a Good move for its ceo Pierre Blouin. Its a Good Way for Tel cos to free up quite a bit of Cash he said in an interview yesterday. Grant said it Sis directories will Likely never be More valuable than they Are right now because they re competing against online search engine giants such As Yahoo and Google. The physical directory is a proven Money maker. A lot of things Are a lot easier with the Book. If you go to Google and try to order a pizza to your House youll find it far More frustrating than going to the yellow pages he said. Analyst Eamon Hoey said the Purchase gives yellow pages a virtual monopoly. It just continues their March across Canada said Hoey senior partner at Hoey associates management consultants inc. In Toronto. They dont need much More. For its Hoey said the Money from the Sale could be used to pay Down debt or fund a share buyback program. More assets from the company could eventually be sold he added. Annie Marsolais director of corporate communications at mpg said the acquisition of its Media makes it the no. 1 directory publisher in Canadas 10 largest markets and its in every province except Saskatchewan. Continued please see its b 6 its makes $ 281 m Deal Telco to sell phone directories business its Al Stream ceo Pierre Blouins Campaign to improve the financial situation at the Winnipeg based Telco took another step yesterday with the announcement that its directories division is being sold for $ 281 million. Other recent Cash generating moves by the company include. In May its announced it was Selling its two biggest downtown properties including its 24 Storey Tower at Portage and main. Kelvin Shepherd president of it Sis consumer markets division said the buildings remain for Sale and the company is optimistic a buyer will be found shortly. Last december its announced plans to slash 800 jobs about 12 per cent of its National workforce of 6,600. Thus far about 80 per cent of the reductions have been achieved Shepherd said. Last february the company eliminated five positions at its Media and subsequently announced it was leaving the Magazine business putting its Trio of publications Winnipeg life mob and Homes into Mothballs. Its makes moves to generate Cash by Larry Kusch the first Grain ship of the season was to Dock at the port of Churchill late last night but it a snot the first vessel to arrive at the Northern port this summer. A rare tourist ship came calling earlier this month and a Quebec based shipping company serving seven Nunavut communities on the Western Shore of Hudson Bay stopped at the Northern port in july. Bill Drew executive director of Churchill Gateway development corp., said the arrival of the first Grain vessel was about two weeks later than Normal but he still expects a pretty Good Grain shipping season this year. It sometimes takes awhile for the buyer to line up his vessel freight and get it for the right Price said Drew whose organization promotes the Northern Manitoba port. So things fell Back this year More than normally. The is Vanguard was to arrive at 11 last night. It will carry 30,000 tonnes of wheat to Mexico. Drew said he expects the wheat Board will ship some 350,000 to 400,000 tonnes of Grain through the port this year while the private Trade will Export 150,000 to 200,000 tonnes of non Board grains. On july 18, the Camilla Desgagnes a vessel owned by the Quebec based shipping firm Desgagnes trans Arctic stopped in Churchill before departing for Nunavut. It was the first of three planned Desgagnes trans Arctic vessels that will Supply communities in the Kiva Liq Region of Nunavut this summer replacing Barge service said Grant Cool ceo and part owner of Kiva Liq Marine which handles non Grain cargo for the port of Churchill. Its now a regularly scheduled run Cool said of the Churchill Nunavut trans Arctic service. Meanwhile on aug. 3, a chartered russian cruise ship the Lyubov Orlova arrived in Churchill with 30 tourists from Europe and North America after a nine Day cruise across Canadas Arctic Waters. The voyage was organized by cruise North expeditions in Kun Ijuan an inuit Community in Quebec. Lynda Gunter co owner of frontiers North adventures in Winnipeg which helped co ordinate sightseeing for the cruise participants said that after touring Churchill the passengers flew to Winnipeg and on to Montreal. They were replaced by about 30 More tourists who flew to Churchill for the return trip through the Arctic. Cool said there is great potential for non Grain cargo shipments through the port. Were working on advanced plans to have cargo of a wide variety coming in and out of the port As part of just a natural growth of business he said without elaborating on the source or Type of cargo. Were going to see what i would Call test programs this seasons we try a variety of things. And i think that next year were going to see some of these projects come to fruition Larry. Kusch free press. My. Ca Grain ship not first to Dock at port of Churchill this year so just what is this outfit that will take Over it Sis directory business assuming regulatory approval by the end of the year the yellow pages group is Canadas largest Telephone directories publisher. It produces More than 330 yellow pages and residential directories each year. It makes More than 28 million copies annually and boasts More than 380,000 advertisers. It also owns and manages some of Canadas leading online directories including yellow pages. Ca canada411. Ca and Canad plus. Ca. Mpg converted 96 per cent of the company into an income Trust three years ago. Its units Ylo. In tax closed Down 21 cents yesterday to $ 14.77 on volume of 2.78 million. Canadas largest publisher of phone directories by David Friend Toronto Sleeman breweries Ltd. Tax ale sees new potential for its Premium Beer labels after a planned $ 400 million acquisition by japans Sapporo breweries Ltd. John Sleeman chairman and ceo of the Guelph ont. Based brewery said yesterday that Sapporo sees Canada As a growth Market for Premium Beer and is very interested in expanding it. One of their Sapporo is Long term goals is to help Sleeman reinvest. On producing and Selling Premium Beer he told analysts in a conference Call while reassuring them that the company Isnit any less interested in its value brands. On the International Market he said Sapporo is also looking to a Leemans brands for expansion outside Canada. A Leemans earnings have been Hurt by stiff Competition in Canada by makers of non Premium Buck a Beer brands. Its pretty premature at this Point to discuss what different countries in the world that our brands would be available but they re interested in growing their business both inside and outside Japan Sleeman said. Weave had fairly extensive conversations about the value of the u. S. Market Sleeman told analysts. He said Sapporo is exploring ways to sell More Sleeman and uni Broue in the United states. The Quick shift in prospects for the major Canadian Brewer comes after Sleeman said late Friday it would sell itself to japans Sapporo in a Deal Worth about $ 400 million including debt. That news sent the Brewers Stock to an All time High on yesterday the first trading of the company is shares since the announcement. Sleeman shares Rose 17 per cent or $ 2.54, to close at $ 17.37 on the Toronto Stock Exchange just shy of the $ 17.50 per share that Sapporo has agreed to pay for Canadas third largest Brewer. The Sale was announced a Day after Sleeman reported a second Quarter profit Rise of 41 per cent to $ 3.5 million while Revenue grew marginally to $ 57.8 million from $ 57.4 million on increased efficiency. That was a major turnaround from the $ 2 million restructuring charge it faced in the first Quarter from cutting 80 jobs last August. Analysts asked John Sleeman whether More Job cuts or facility shutdowns Are on the horizon now that Sapporo is involved. Sleeman said there Are no plans to close any facilities and he does not see a need for More layoffs. But he added i dont think its fair to paint Sapporo into a Corner and say that everyone is going to keep their Job. Last week 40 additional employees were Cut by the company which now employs about 700 people. Canadian press Sleeman sees potential for Premium labels by Larry Kusch Simplot Canada Ltd. Has sold its Brandon fertilizer Plant to a Kansas based company. Koch nitrogen co. Of Wichita announced yesterday that its subsidiary Koch nitrogen fertilizer holding inc., has signed a Stock Purchase agreement to acquire the Plant As Well As distribution facilities in Oak Bluff and Saskatchewan. The Sale subject to regulatory approvals is expected to close in september. No financial details were disclosed. Simplot Canada has been an important part of our fertilizer business for 40 years but the global Market is no longer favourable to a single Plant nitrogen operation said Bill Whitacre president of Idaho based Simplot agribusiness. We Are confident that an International Multi Plant operator such As Koch nitrogen will better serve our Canadian customers in the Long term he said in a statement yesterday. Dave Rushforth site services manager at Sim plots Brandon Plant said the 204 Plant workers welcomed news of the Sale yesterday. Koch has been kicking the tires for five or six months he said. It looks really positive. All the employees Are looking Forward to it. Rushforth said no Job losses Are expected at this time and in fact there could be growth at the Plant which will be renamed Koch fertilizer Canada Ltd. Brandon mayor Dave Burgess said while Simplot has been a Good corporate citizen the change in ownership could Benefit the City. I think actually its very Good news Burgess said in an interview citing the potential for investment in the Brandon facility. Koch definitely has a reputation that precedes itself that they dont go. Slashing and tearing companies apart. They Are actually More in a growth Type of Mode. The Simplot Canada Complex in Brandon produces ammonia nitric acid urea uan solutions ammonium nitrate solution ammonium poly phosphate and ammonium Thio sulfite. The Complex and associated terminals employ about 200 full time workers As Well As other seasonal contractors. This acquisition fits our vision of identifying growth opportunities where we can apply our capabilities to enhance the business said Steve Packebush president of Koch nitrogen. This production Complex and associated terminals Are ideally placed for meeting the needs of customers in Western Canada As Well As the important wheat growing regions of the Northern United states. Koch nitrogen co. And its affiliates manufacture Market and distribute More than 6 million tonnes of fertilizer annually. Larry. Kusch free press. My. Ca with a file from the Brandon Sun Simplot Sells Brandon Plant to Koch nitrogen of Kansas Wayne Glowacki / Winnipeg free press Kelvin Shepherd says phone directories Arentt Central to it Sis strategy going Forward. Supply ship visited Churchill in july with goods for Northern communities. Supplied photo ;