VTR, Mercurio partner as Chilnet controllers

Chilean telco VTR and local newspaper El Mercurio have acquired more than 50% of local directories company Chilnet, controlling the stake through a new company, local newspapers reported. The new owners have said they expect to distribute over one million directories a year in the metropolitan region and plan to expand coverage. The transaction took place on Monday (Dec.6) through an unannounced capital increase. Chilean investment group Incorp previously owned Empresas Chilnet and now has a minor share. Consultancy firm SW Business managed the operation. Chilnet reported 80% growth in revenues in 2004 increasing its client base and market share estimated at 5%. TPI, a subsidiary of Spain's Telefónica (NYSE: TEF) group, is a key player in the Chilean market with its Publiguías product. Chilnet started operations 14 years ago with its first product Directorio IndiFax. Later the company launched the yellow pages directories for Chile and Santiago. Chile's directory market generates sales of US$70mn a year.