Billionaire Kerry Stokes’ Seven Group Holdings, with an almost 40% holding in Seven Network owner Seven West Media, is shrugging off its media overlay with a name change.
The ASX listing code, to SGH from SVW, and website, from www.sevengroup.com.au to www.sghl.com.au, will change November 18.
The company's current name was adopted in 2010 to when the 7 Network and WesTrac Holdings (one of the largest Caterpillar dealers in the world) merged.
“SGH has evolved into one of Australia’s leading industrial-focused diversified operating companies,” said CEO Ryan Stokes, the son of chairman Kerry.
“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.”
The company's main value now is in its Caterpillar dealership, ownership of integrated construction materials business Boral, equipment hire business Coates and lighting and power solutions group Allight. SGH also has a 30% shareholding in Beach Energy.
SGH dwarfs Seven West in terms of value. The market capitalisation of SGH is $17.525 billion. Seven West Media is just $262 million.
The deliberately neutral name will give the business much-needed room to further diversify and shake off market perceptions of being just a media-focused group, says Houston Group strategy director Guy Mitso.
"Brand names, like many things are a product of their time and context," Mitso said.
"The trade-off between existing equity and awareness needs to be balanced with strategic potential and ultimately - business structure.
"As SGH has evolved into a diversified house of brands across industrial services, energy and media, it makes less and less sense to badge it with the Seven brand.
"While the Seven brand will continue to be a well-known and powerful asset within the portfolio, the signal to shareholders is one of renewed alignment and a future-oriented vision for SGH Limited. Add to the mix a tumultuous year or two for the Seven brand, it’s a good time to refresh and refocus."
From a consumer perspective the name change will largely fly under the radar and will only impact the business/investor audience, says Bench Media brand strategy lead Nate Vella.
"If anything, making noise about this name change - if it reaches consumers - could cause people to look into their investment portfolios and form an opinion about the media business (Seven West Media)," Vella told AdNews.
"Which for the most part is the face of the group, some of which may be negative, given their connections to energy and resources.
"Perhaps this is part of the strategy behind not making a song and dance about the name change… think back to when BHP became South32."
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