The odds that Seven West Media will get $40 million from the sale of its Pacific Magazines business to Bauer Media have lengthened after the Kerry Stokes controlled company said yesterday it had started action in the NSW Supreme Court to compel Bauer Media to complete its deal.
The company said in a short statement to the ASX the sale contract is unconditional.
Seven said Bauer solicitors had contacted it arguing it is “aware of its obligations” under the agreement.
If that’s the case, will Bauer settle the purchase today as previously reported?
“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”, Seven West said in the statement yesterday.
Investors couldn’t care, the shares slipped to a new all-time low of 6.1 cents, which values Seven West at less than $100 million.