Seven West Media (SWM) has begun legal proceedings against Bauer over the $40 million purchase of its magazine division Pacific.
The agreement for Bauer to acquire Pacific was scheduled to be completed on April 9, after being cleared by the Australian Competition and Consumer Commission (ACCC).
However, following the coronavirus pandemic, Bauer has undergone significant cost-cutting measures, such as closing its entire New Zealand operations last week.
In a note to the ASX, after it went into a trading halt, SWM confirmed it began court action to ensure the transaction is completed.
“The Bauer transaction is being pursued to completion. The contract is unconditional following the ACCC’s clearance,” says the statement.
“Seven instituted Court proceedings in the NSW Supreme Court yesterday to compel completion. Seven has received an email from Bauer’s solicitors saying ‘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’.”
AdNews has reached out to Bauer for comment.
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