adminofoc, October 2017 - News, Stock update

Several significant corporate transactions saw us add Seven Group Holdings (ASX:SVW) to our portfolio during the September quarter. These included:

  • the sale of WesTrac China to Lei Sing Hong Machinery for $540m
  • the acquisition of the remaining 53.3% of Coates Hire not already owned by the Group for $517m, and
  • a capital raising of $375m to increase the free float in the stock and provide balance sheet flexibility.

Seven’s key assets now comprise:

  • Coates Hire – the leading Australian equipment hire business, with over 200 branches and national footprint
  • WesTrac Australia – Australia’s largest authorised Caterpillar dealership, including sales, finance, maintenance and resale
  • AllightSykes – a supplier of light towers, generators and pumps, and
  • Seven West Media – in which Seven owns a 41% stake.

We view Seven as an excellent exposure to an expected pick-up in both the Australian infrastructure investment cycle and the mining cycle, both of which appear to be in the early stages of a recovery which could run several years.

View September 2017 reports

TAGS : AllightSykes, Australian equities, Australian shares, Coates Hire, Lei Sing Hong Machinery, micro caps, Seven Group Holdings, Seven West Media, Small caps, WesTrac