Seven Group Holdings Limited (SVW) is a diversified operating and investment company.
SVW has a portfolio of industrial services, media, property and other investments. Australia is the base for SVW. SVW operates in Australia and China.
In mid-June, Nexus Energy's shareholders voted not to accept Seven Group's acquisition bid. This allowed the company to go into voluntary administration.
Seven Group had a contingency plan if the acquisition bid was rejected. It acquired Nexus Energy's senior debt and enough subordinated notes to ensure it could play a role in the voluntary administration process.
In the past few weeks, the voluntary administrators have held discussions with Seven Group on providing AUD 30 million of short-term funding. This is to enable Nexus Energy's Longtom, Crux and Echuca Shoals oil and gas projects to continue with minimal interruption.
Seven Group has agreed to provide the funding, with the debt facility secured against the assets of Nexus Energy.
We remain confident Seven Group will gain ownership of Nexus Energy's major assets. Including the Longtom Gas Project in the Gippsland Basin. The 15% of the Crux development licence in the Browse Basin. And the Echuca Shoals gas exploration concession.
Seven Group's shares are undervalued. The market has concerns with the deterioration in the profitability of the WesTrac Australia and Seven West Media businesses.
There is no change to our Seven Group forecasts or fair value estimate of AUD 9.00.
For more information about Seven Group Holdings Limited (SVW) please contact us on 07 4771 4577.