A leading figure from Australia’s resources sector has taken the reins at a major media company – and it is not Gina Rinehart.
Don Voelte, the former chief executive of Woodside Petroleum, was on Tuesday appointed chief executive of Seven West Media, the owner of The West Australian newspaper, the Seven Network, Yahoo!7 and Pacific Publications.
He succeeds David Leckie, who moves to the Kerry Stokes-controlled media and earthmoving equipment company Seven Group Holdings as executive director of media.
Investors expressed skepticism about the changes, sending Seven West’s share price tumbling 27 cents, or 13.7 per cent, to close at $1.70 on a day the broader market fell about 0.4 per cent.
Seven Group holds about 32 per cent of Seven West.
While the media sector, in particular newspapers, have been hit hard in recent times due to the shift of viewers and readers onto digital devices, Mr Voelte painted a positive picture for the industry.
“I was in the industry in oil and gas through the good and the bad and I can tell you there were some times like in 1988 and 1998 you couldn’t give it away,” Mr Voelte told AAP from Perth on Tuesday.
“So things are cyclic.
“I think this industry, the media industry, has been extremely healthy in the past, it is something that people desire and we just have to find the correct methods to deliver our creative product to them.”
Bell Direct equities analyst Julia Lee said the share price decline reflected concerns regarding Mr Voelte’s lack of media experience compared with his record in the sector.
“Don Voelte has a lot of respect in the market but unfortunately in the media space the market probably would have preferred someone with a lot stronger media background,” Ms Lee said on Tuesday.
Seven Group Holdings chief executive Peter Gammell said Mr Leckie’s role would be to help develop the company’s media strategy.
“David has got the keenest eye on product and media strategy of anyone in the industry,” Mr Gammell said.
Seven West confirmed the guidance given in April for full year underlying earnings before interest and tax of between $460 million to $470 million.
Meanwhile, Mr Gammell said Seven Group had made no decision on whether to launch a counter offer for Consolidated Media Holdings (CMH).
Seven Group had asked the competition regulator to look into the regulatory issues of any potential move to increase its stake in CMH, which has a 50 per cent investment in Fox Sports and a 25 per cent stake in Foxtel.
“We intend to explore all options and one of those options has to include ensuring we don’t have any regulatory impediment to our changing our holding in CMH,” Mr Gammell said.
“Clearly that would include either some or more shares or even all of the shares of CMH.”
CMH’s two largest shareholders are James Packer’s Consolidated Press Holdings, which has just over 50 per cent, and Seven Group, which has 24 per cent.
News Ltd, the Australian arm of Rupert Murdoch’s global media empire News Corporation, has made a $1.97 billion, or $3.50 per share, offer to buy all of ConsMedia.
Seven Group, which in addition to Seven West also has investments in earthmoving equipment dealership WesTrac, Agricultural Bank of China and regional broadcaster Prime, closed down 18 cents at $7.52.
CMH closed down two cents at $3.38.
