Yancoal Australia Refinancing Debt with $US2.3bn Notes Sale
The Rio Tinto’s and BHP Billiton’s of Australia continue to shake off concern over iron ore and coal prices, but other companies are making some drastic moves to remain or become profitable again. Yancoal Australia Ltd, an arm of China’s Yanzhou Coal Mining Co Ltd has designed a $US2.3 billion deal to refinance its debt. This move will help the company, in part, weather a particularly lengthy slump in coal prices.
"In a depressed commodities marketplace facing continued uncertainty for the near-term, Yancoal's existing level of debt is a significant constraint on our future expansion and operational improvement strategies," Yancoal Chief Executive Reinhold Schmidt said in a statement.
Yanzhou planned to privatise Yancoal earlier this year, but the motion failed after the company’s second largest shareholder—Hong King-based trader Noble Group—provided enough resistance. Yancoal’s new approach is to raise up to $US2.3 billion through a sale of convertible notes to shareholders. Parent company Yanzhou has already provided its ful 78-percent share, which totals more than half of the money needed to be raised at $US1.8 billion. To shore up coal operations and pay distributions to the notes, Yanzhou has committed to providing a further $A1.4 billion. The annual distribution rate on the notes will be set at 7 percent for the first five years.
Yancoal has had a rough year compared to competitors like Whitehaven Coal and New Hope Coal—Yancoal’s shares have dropped 71 percent as the company has tried to manage its debt.
Information sourced from Reuters.
Amobee Appoints Nick Brien As CEO
In its latest strategic move, Amobee—a global multimedia advertising leader—announced that Nick Brien will be its Chief Executive Officer. The company is entirely owned by Singtel, Asia’s leading communications technology organisation, which provides consumers with mobile, broadband, and TV and businesses with data hosting, cloud, network infrastructure, analytics, and cybersecurity tools.
Brien, who has worked for Microsoft, Intel, P&G, and American Express, will take over to drive the next generation of advertising tech. Said Evangelos Simoudis, Chairman of the Board of Amobee: ‘Nick has the deep expertise in advertising that we need to seize the market opportunities ahead’.
How Did Brien Get Here?
Before joining Amobee, Brien led 15,000 people across 40 divisions as CEO of the Americas for Dentsu International. For thirty years, he’s helped brands pilot unique advertisements, keeping up with the latest trends. He’s served as CEO of McCann Worldgroup, global CEO of IPG Mediabrands, President of Hearst Marketing Services, and CEO of iCrossing. Over the course of his career, he’s consistently strategised how to keep up with digital shifts. Now, he’ll capitalise on Amobee’s legions of experienced data scientists and developers.
‘I’m excited to be joining Amobee at such a transformative time in our industry’, Brien explained. ‘We’ll pilot advertising accountability and intelligent decisioning. And there’s no doubt in my mind that optimising media performance—whether you’re targeting, planning, buying, or delivering—can only be achieved using applied science, machine learning, and data analytics’.
What Does This Mean for Amobee?
Amobee is set on growing its personal brand within the advertising sector. As APAC social media influencers, Gen Z growth hackers, and viral content producers start to enter the field, established companies will be working doubly hard to keep up. Amobee, however, is still looking good. With a Gartner Magic Quadrant for Ad Tech, a Forrester New Wave recognition, and now, Nick Brien as CEO, the firm is set up for success.