Kerry Stokes’ main listed company, Seven Group Holdings, wants shareholder approval to change its registered company name to "SGH Limited." This move aims to further distance the company and its empire from its ailing TV arm, Seven West Media.
Shareholders attending the AGM on November 14 will be asked to approve the change, which will also see the company’s ASX code shift from SVW to SGH.
If approved—which is likely, given that the Stokes family controls 51% following the Boral takeover completed earlier this year—the new name and ASX code will take effect from November 22.
Seven stated that the new ASX code would provide "a stronger, more direct linkage between the company name and equity markets."
"SGH has evolved into one of Australia's leading industrial-focused diversified operating companies," said CEO Ryan Stokes.
The current name was adopted in 2010, reflecting the merger of Seven Network and WesTrac Holdings. Seven Network was merged with West Australian Newspapers a year later, forming a company valued at around $4.1 billion on paper.
Seven Group has acquired other companies, such as Coates Hire, to expand its service offerings in building and construction. It also took control of Boral this year in its largest deal to date.
The company controls 30% of the listed energy company Beach Energy and holds 40% of the diminished Seven West Media, whose market value has shrunk to just $255 million.
Seven Group stated that the name and code changes align with the "evolved nature" of its core operations since the merger.
"The rebrand aligns the company's name and ASX listing code with the evolved nature of its core operations while still retaining links to our heritage,” CEO Stokes added.
This change severs any direct public link to the underperforming TV business, which will now only be mentioned in annual reports and earnings releases as a minor item.
However, it's hard to imagine the Stokes family divesting from the underperforming asset, as its TV business and West Australian newspaper, along with other small media interests, make it the dominant commercial media outlet in WA—where most of its key operations, particularly the distribution of Caterpillar equipment and services, take place.
