Seven West Media’s Kerry Stokes Announces Departure
Kerry Stokes, the billionaire chairman of Seven West Media based in Western Australia, has announced his exit from the company. Earlier this year, Stokes agreed to a merger between Seven West Media (ASX: SWM) and Southern Cross Media Group.
Merger Backed by Independent Report
An independent report commissioned from Kroll Australia Pty Ltd, supported by Southern Cross Media, confirmed that the merger deal is in the best interests of Southern Cross shareholders. Seven West Media’s '7' television portfolio continues to dominate the Australian sports market for the upcoming year, reinforcing the rationale behind the merger.
Market Reaction and Investor Concerns
Despite the merger news and strong sports dominance, Seven West Media’s share price showed no movement on Thursday. By 1:30 pm AEDT, only $7,000 worth of SWM shares had traded intraday, indicating extremely low liquidity similar to what is usually seen in very small mining exploration stocks.
This lack of trading volume suggests that SWM has lost its appeal in the market, struggling to attract investor interest.
Comparative Stock Performance
- Southern Cross Media (SXL) shares fell 1.7% intraday to 85 cents.
- However, SXL has performed well this year, with a 41% increase year-to-date.
Investor Uncertainty Over Stokes’ Exit
Stokes’ departure raises questions about his future plans and the company’s direction amid these market dynamics.
"SWM just doesn’t have the sex appeal anymore to garner market interest."
Author's summary: Kerry Stokes steps down amid a merger, yet Seven West Media’s shares show weak market enthusiasm despite ongoing sports dominance.