Recent capital market activity amongst the Yellow Pages suggests the colour could well stand for solid gold. Compared to the newest software 'killer app' or mobile phone breakthrough, business-to-business B2B yellow pages directories may not set the blood of every private equity specialist racing. But they have provided very high returns to their owners, thanks to the advertising revenue they can raise from small and medium-sized businesses - for whom the yellow pages are often the only marketing outlet.
Reflecting the 40% profit margins the sector has achieved, several notable deals have occurred. 2003 saw the almost S$200 million IPO by Yellow Pages Singapore, as well as the $2.1 billion UK...
