Mainfreight flags plan to claim against former Wim Bosman owner
While two of the customer losses were expected after due diligence, the third came as a surprise, the global logistics company says.
Global logistics company Mainfreight intends mounting a compensation claim against the former owners of Netherlands-based Wim Bosman over the loss of a major customer.
The company has "notified the former owner that it intends to bring a claim" but has not started court proceedings, it says in a statement. Mainfreight bought Wim Bosman in 2011 for up to 120 million euros if certain targets were met, expecting to get a foothold in Europe and grow earnings.
Instead, it lost key trading accounts in its first 12 months of ownership while having to cope with poor trading conditions in the face of a European recession and bedding in the operations. While two of the customer losses were expected after Mainfreight's due diligence, the third came as a surprise, it says.
"Any claim against the former owner must, in accordance with the purchase agreement, be brought by arbitration," the company says. "If Mainfreight commences arbitration proceedings against the former owner it will make an announcement at that time."
The shares were unchanged at $10.62 today and have shed 9.2 percent this year.
(BusinessDesk)
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Mainfreight flags plan to claim against former Wim Bosman owner
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