Seven West has announced the sale of Pacific Magazines to Bauer Media for $40m. While at a discount to Credit Suisse’s valuation of $60m, when completed the sale would further reduce the company’s leverage ratio.
The broker estimates the transaction will be dilutive by -2% to earnings per share. The three recent transactions announced by the company, indicate a clear strategy to consolidate assets and focus on being a TV business, the broker points out.
Neutral rating and $0.43 target maintained.
Sector: Media.
Target price is $0.43.Current Price is $0.43. Difference: $0.00 – (brackets indicate current price is over target). If SWM meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
