Corrs Chambers Westgarth and HSF Kramer are advising on Southern Cross’s $215m scrip acquisition of Seven West, flipping the regional broadcaster from target to buyer after Nine walked away from its own takeover talks.

The merger, which is a scheme of arrangement, would create a $420m group combining Network Seven, The West Australian and Southern Cross’ radio networks.

Seven West Media, chaired by billionaire Kerry Stokes, is a legacy Australian media powerhouse. It owns the Seven Network, major print titles like The West Australian and The Sunday Times, and publishes across digital platforms. Southern Cross owns the Hit Network, Triple M and LiSTNR app, making it the country’s biggest radio and digital audio operator.

Corrs, which previously advised Southern Cross on its landmark 2011 Austereo takeover, is back on the ticket for the broadcaster.

On the other side, HSF Kramer, long-time counsel to Seven West on deals including its 2019 Prime Media acquisition and earlier Seven Media merger, is again at the table. The ties run deep: HSF partner Michael Ziegelaar also sits as a non-executive director on the Seven West board.

The deal, subject only to shareholder approval for Seven West shareholders, has reignited investor anger over ASX listing rules. Investor groups say the structure exposes an “absurd” loophole that lets one side vote while the other sits out.

Shareholders’ approval is required if a listed company wishes to issue more than 15% of its issued capital during any 12-month period. There is an exception for shares issued under a takeover or scheme.

The ASX is promising a consultation by November, but until then the revolt is set to simmer.