Morningstar, Jefferies differ in views as Seven West Media, Southern Cross merge

Southern Cross Media

30/09/2025 19:26

** Australian media groups Seven West Media SWM.AX and Southern Cross Media SXL.AX agreed to merge, the former said on Tuesday

** Under the deal, Seven West shareholders would receive 0.1552 Southern Cross Media shares for each share held.

** Morningstar says the deal could allow for better performance of Seven West shares, which have underperformed despite aggressive cost cuts, monetization improvements of digital streaming and deleveraging

** Jefferies, however, highlights that the A$417 million ($275.97 million) market cap of the combined entity is still small, and the merger fails to address structural problems in traditional media

** Jefferies maintains PT of SWM shares at A$0.15, rated "hold"

** Morningstar maintains A$0.30 fair value estimate for SWM

** SWM's shares closed over 7% on Tuesday, Southern Cross shares closed nearly 6.5% higher

($1 = 1.5110 Australian dollars)

(Reporting by Nichiket Sunil in Bengaluru)

((Nichiket.Sunil@thomsonreuters.com))