Seven Network awaits decision for WesTrac partnership
A decision on Seven Network's $13 billion partnership with Kerry Stoke's privately owned industrial equipment business WesTrac Holdings will be revealed on Tuesday next week, according to the Federal Court.
Justice Peter Jacobson addressed the court today that the decision will be released next week instead of today, in relation to the scheme of the arrangements for the union, the obstacles facing the proposed tie-up next week.
It was also revealed that shares of Seven Network will be suspended from trade on the Australian Securities Exchange on April 29 with WesTrac, and be renamed Seven Group Holdings Ltd (SGH), to trade on a postponement settlement basis the following day, April 30.
The new company will penetrate into the resource service sector and expand its presence in China through its partnership with the WesTrac group.
WesTrac is also an authorized Caterpillar dealer in Western Australia, New South Wales, the ACT and north-western China.
Stokes, who also heads Seven Network, will emerge with 68 per cent of the new company. He said that the partnership will further present bigger opportunities for growth, and there will be future developments in terms of media, investments, and equipment management.
At least 88.7 per cent of Seven Network's shareholders were in favor to the merger during a meeting last Tuesday.
Peter Ritchie, deputy chairman of Seven Network, said on Tuesday that WesTrac would catch up as SGH's main business media for the coming years.
"The WesTrac side of this organization is going to be the core of it in five years' time - mark my words," Ritchie said.