Not even two weeks after the ACCC approved Bauer’s takeover of Pacific Magazines and the two companies are heading to court.
There have been questions over whether or not the deal will actually go ahead since the ACCC approved it, with Bauer reportedly now angling for a lower price.
It was earlier this month reported, that despite agreeing to a $40 million takeover, Bauer now believes Pacific Magazines is valued closer to 20 million.
Seven West Media’s Pacific Magazines is now taking Bauer Media to court, in an effort to ensure the deal goes ahead at the agreed price.
The case is due before the NSW Supreme Court on 26 April.
A Seven source told the Herald, the court case is a “normal commercial list proceeding” to ensure the deal goes ahead.
“Bauer is aware of its obligations under the Sale of Business Agreement and, as you know, has been actively engaged since October 2019 in preparing for completion,” SWM told the ASX this morning.
Bauer Media ANZ CEO Brendon Hill has not responded to B&T’s requests for comment.
It comes as Seven West Media goes into a trading halt on the ASX this morning.
SWM shares were currently trading at $0.065, which is down from a 2007 high of $15.
The company now has a market value of $115 million and a debt pool of $859 million.
Last Thursday, Warburton announced 20 per cent pay cuts at SWM and said job losses were “inevitable”.