Seven West Media's Kerry Stokes Announces Departure
Kerry Stokes, the billionaire chairman of Seven West Media (ASX:SWM) based in Western Australia, has confirmed he is stepping down. Earlier this year, he agreed to a merger with Southern Cross Media Group, supported by an independent report from Kroll Australia Pty Ltd.
Merger Backed by Independent Report
The Kroll report concluded that the merger is in the best interests of Southern Cross shareholders. Seven West Media’s ‘7’ TV portfolio is expected to maintain its dominance in Australian sports broadcasting in the coming year, reinforcing the strategic value of the deal.
Market Reaction and Share Liquidity
Despite these developments, Seven West Media’s share price remained stagnant on the announcement day, with only $7,000 worth of shares traded by 1:30pm AEDT. This level of low activity resembles that of highly illiquid, small-cap stocks in exploration mining.
This suggests a decline in market interest for SWM shares.
Southern Cross Media Performance
Southern Cross Media's shares fell 1.7% intraday to 85 cents but have shown strong performance year-to-date, rising 41%.
"SWM just doesn’t have the sex appeal anymore to garner market interest."
Investor Concerns
Stokes' departure raises questions about his future intentions and the company’s prospects amid shifting market sentiment.
Author's summary: Kerry Stokes steps down from Seven West Media amid a merger with Southern Cross; however, market interest in SWM shares remains notably low despite solid sports media dominance.