July 25, 2012 / 6:35 AM / 5 years ago

Yell says review may result in dilution of shareholder interests

July 25 (Reuters) - Phone directories company Yell Group Plc said it was considering options that may result in a dilution of existing shareholders’ interests, as part of a capital structure review.

“The group intends to consult with its key stakeholders, including lenders and shareholders over the coming months in order to put in place an appropriate group capital structure within the current financial year,” the company said, adding that no decision had been made yet.

Yell, which publishes paper phone books around the world, has been working to build on its digital offerings but continues to be weighed down by a massive load of debt. Net debt stood at 2.18 billion pounds ($3.38 billion) as of June 30.

In May, the company reported a massive 1.42 billion pounds loss before tax for last year and said it appointed Goldman Sachs and Greenhill as advisers to assist it with putting in place a new capital structure.

For the first quarter ended June 30, Yell said revenue fell 15 percent to 331 million pounds and that the adverse revenue and margin trends it reported in May continued to impact financial performance. ($1 = 0.6441 British pounds) (Reporting by Brenton Cordeiro in Bangalore)

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