Will Seven West Media’s $30m dividend next week be its last?
Seven’s shares hit a record low of 63c last Friday and closed at 64c last night -- -- even as the broader sharemarket hit a three-month high. Things do not look good, write Glenn Dyer and Stephen Mayne.
Debt-laden Seven West Media, 41% owned by Kerry Stokes Seven Group Holdings, is under growing pressure to raise fresh capital and cut costs in order to avoid repeating the disasters that unfolded at rival Ten Network Holdings.
A capital-raising of around $300 million would make a meaningful dent in Seven’s $795 million debt but the spectre of this is putting continuing pressure on the company’s share price as analysts ponder the appetite of controlling shareholder Kerry Stokes to sink any more of his wealth into a losing investment.