Companies

Apr 8, 2014

Forget Fairfax and Channel Five, Stokes only wants broken Nexus

Takeover talk swirls around Kerry Stokes and Seven West Media, from a play at Fairfax to a British television network. But Stokes likes distressed assets -- putting Nexus Energy in the gun.

Paddy Manning

Crikey business editor

Whatever’s on the mind of media and mining mogul Kerry Stokes, a bid for Fairfax is clearly the farthest thing from it. In the past fortnight we’ve had news of a $400 million-odd play for distressed oil and gas explorer Nexus Energy by Seven Group Holdings, and now a mooted 200-300-pound bid for Britain’s bottom-ranked free-to-air TV network, Channel 5, by Seven West Media.

Going by recent share price movements, the market is not enthused by either deal. Stokes’ empire is like a pyramid, topped by the wholly owned, unlisted Australian Capital Equity, which owns two-thirds of the listed Seven Group Holdings, which in turn owns one-third of the listed Seven West Media, owner of the country’s leading free-to-air TV network. It’s fair to say the most risk is in the bottom layer, where less of Stokes’ wealth is tied up.

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1 comments

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One thought on “Forget Fairfax and Channel Five, Stokes only wants broken Nexus

  1. Cynic

    Interesting looking at Stokes strategy if you believe what has been a long term rumour in WA – that Stokes is a front man for a Murdoch financed media play.

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