Shares of Seven Group Holdings Limited [ASX:SVW] are up 6.95% today at time of writing. Shares increased from $11.80 to $12.62.
Why did they rise 7%?
Seven has announced the sale of WesTrac China to Lei Shing Hong Machinery Limited (LSHM) for $540 million, subject to regulatory approval.
WesTrac China started operations in 2001 in the territories of Shanxi, Hebei, Liaoning, Inner Mongolia, Heilongjang, Jilin, Beijing, and Tianjin. The company provides customers with machinery and construction equipment.
The sale will lift profits after Seven also announced that a 77% fall in net profit after tax for the year dragged down by the media sector of the group. The group reported an underlying EBIT of $297 million, up 9% year-on-year.
Future for Seven Group..
Ryan Stokes, Managing Director and CEO of Seven Group, said: ‘The sale of WesTrac China will allow us to reallocate capital into other opportunities in Australia, including investment in our WesTrac Australia business.’
The company expects publishing trends to continue, which means Seven Group will have to keep relying on the strength of its mining and energy businesses.
The company has announced a final fully franked dividend distribution of 21 cents per share to be paid on 6 October.
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