Beach bounces on Seven Group speculation

Company News

by Lelde Smitts

Shares in Beach Energy Limited (ASX:BPT) have bounced in morning trade after reports Seven Group Holdings Limited (ASX:SVW) has lifted its stake in the oil and gas producer.  
 
Media speculate the Kerry Stokes-led investment group secured between 3.5 per cent to 4.9 per cent of Beach Energy after the market closed yesterday and is eyeing an even bigger stake.  
 
The news comes just one month after Seven Group got the green light for its controversial takeover of troubled oil and gas junior Nexus Energy Limited (ASX:NXS)
 
Only yesterday Beach Energy flagged plans to cut capital expenditure by up to 20 per cent as it battles with a declining stock price on the back of plunging oil prices.  
 
Beach Energy reported a net profit of almost $102 million in the 2014 financial year.