ASX asks Seven West Media to explain climbing share price
The Australian Securities Exchange (ASX) has written to Seven West Media seeking an explanation for the company’s climbing share price and increase in trading activity.
The ASX noted Seven’s shares were at a low of 8.6 cents on Monday, but had since climbed to an intraday high of 13.5 cents.
The ASX asked if there was any information which had not been announced to the market and could be informing this trading.
Source: Google
Seven assured the ASX it was not aware of any information which could be leading to the surge, and said it was compliant with the listing rules.
Shares have now dropped back to 12 cents, with the company’s market capitalisation sitting at $199.67m.
For the calendar year to date, shares have been as high as 34 cents, and as low as 6 cents.
It received a cash injection of $40m from the recent sale of Pacific Magazines to Bauer Media, but has suffered blows with a scuppered merger with Prime, the postponement of the Olympics, and debt levels over $500m. At its half-year results, prior to the pandemic reaching Australian shores, it had a net debt of $541.5m.
Due to the COVID-19 pandemic, Seven, like many other media companies, has removed its profit guidance for the financial year, enacted pay cuts and made various roles redundant.
According to the ASX, it happened to SCA last week also, the company responded on the 28/05
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