Company news in brief

Netflix adds to growing debt pile

Netflix Inc announced on Monday it will tap debt markets for a second time this year, aiming to raise another US$2 billion as the streaming video pioneer invests heavily in production of original shows and content acquisition to fend off intensifying competition.

The move, which the company said was aimed at funding a broad spread of activities including paying for new content, spurred falls in both the prices of its bonds and its shares as investors worried about the growing costs of its huge planned investments in years to come.

Netflix chief executive Reed Hastings has been explicit about the Los Gatos, California-based company’s plan to fund content acquisition by raising debt. “We’ll continue to finance our capital needs in the high-yield market,” Hastings wrote in his second-quarter shareholder letter.

-Nampa/Reuters

Verimark says majority shareholder intends to delist firm

South Africa’s Verimark Holdings said on Monday its majority shareholder intended to acquire the remaining shares and delist the firm which sells direct response television products.

The company said it had received notice from the Van Straaten Family Trust, which holds around 64% stake in Verimark, that it planned to acquire the minority interests.

Verimark said on Monday its revenue for the six months ended 31 August 2018, fell 1% to 207.5 million rand on the back of lower consumer confidence due to the country’s recession and most retailers tightening up on stock holding.

-Nampa/Reuters

Sony makes no concessions to EU regulators

Sony Corp has not offered concessions to European Union antitrust regulators reviewing its US$2.3 billion offer for control of EMI to become the world’s largest music publisher, the European Commission website showed on Monday.

EU antitrust regulators earlier this month asked rivals and users whether they think the Japanese group would use its greater market power to win better terms in digital media deals.

The deadline for proposed concessions in the European Commission’s preliminary assessment of the deal was October 19. The EU executive’s website showed that Sony had not submitted any.

-Nampa/Reuters

Glencore CEO to retire in 3 to 5 years

Ivan Glasenberg, who built Glencore into a dominant force in commodities trading and became the face of the industry, told investors he plans to retire in three to five years, according to people familiar with the matter.

Glasenberg discussed his succession plan in recent meetings and said he has started training three to four front runners as the next chief executive officer, said the people, who asked not to be identified because the conversations were private.

Glasenberg, who turns 62 in January, anticipates retiring between the ages of 65 and 67, and believes the next leader should come from a younger generation, the people said. A spokesperson for Glencore declined to comment.

The comments put a timeline on the chief executive’s exit for the first time and force investors to consider what had long seemed unthinkable: a Glencore without Glasenberg.

The brash, workaholic South African started his career at Glencore more than three decades ago, and has held the top job since 2002. But Glasenberg’s age and the announcement earlier this year of a US investigation into Glencore’s dealings in the Democratic Republic of Congo have spurred questions on succession planning from investors and analysts.

-Fin24

Transnet's Gama slams dismissal

Transnet is abusing its power by announcing his dismissal and he is considering legal steps against the entity, embattled CEO Siyabonga Gama told Fin24 on Monday evening.

He further accused the entity of believing it was above the law.

Speaking to Fin24 by phone on Monday evening – the day Transnet had reportedly said in a letter would be Gama's last in his position – Gama confirmed a letter had been sent to him directing him to report to work, collect his belongings and return Transnet property.

However, Gama dismissed the letter as a "smokescreen", saying he had responded through his lawyers to say the letter and its directives were unlawful.

"I did receive, late last night, a letter to that effect.

"During the course of today I did inform Transnet that what they were saying was in fact unlawful and what they were asking me to do could not be done.

"A court order on Friday indicated that parties should refer this to arbitration," Gama said.

-Fin24