Telstra will sell-off a majority of its stake in the company that produces the Yellow and White Pages.

Reports today say the Australian telecoms company is looking to offload 70 per cent of its telephone directory business Sensis, with indications it will be sold to US private equity firm Platinum Equity for around $454 million.

Telstra will retain thirty per cent of Sensis in the reported deal, saying it will continue to provide directory assistance services and some other minor functions.

The company also says Sensis will uphold its requirement to produce and distribute the White Pages, which is a stipulation included in Telstra’s carrier license agreement.

“Platinum Equity will operate Sensis as a separate entity, giving it the focus it needs to extend and enhance customer offerings and benefits in an agile digital world,” Telstra chief executive David Thodey said in an official statement.

Federal Communications Minister Malcolm Turnbull says the requirement to continue producing the White Pages may not be permanent.

“The license condition requiring Telstra to produce a White Pages for every fixed line subscriber is one of those regulations under review,” Mr Turnbull said in a statement to the media.

“We are undertaking a thorough review of all regulation affecting the telecom sector with a view to removing unnecessary and costly red tape.”

It has been an interesting road for Sensis, which was purchased while it operated under a different name in 2004. The company was considered for sale during its golden period in late 2005 but that possibility did not eventuate. Just a few years later, Sensis was forced to cut nearly 700 jobs as its revenues plunged.

The sale price of $454 million is just 2.4 times the company’s forecast earnings this financial year. Telstra says proceeds will incrementally lead to around $5 billion in extra cashflow by the end of the financial year.