JSE-listed chemicals manufacturer Omnia Holdings on Monday announced details of its previously announced R2-billion rights offer, which it will use to reduce debt.
The company said that 100-million shares would be issued at a subscription price of R20 an ordinary share – a discount of 41% on Thursday’s closing price of R34.07 a share.
The company’s stock fell to R32.50 a share in early morning trade on the JSE on Monday.
The offer is fully underwritten by asset managers that represent shareholders of Omnia.
Omnia chairperson Ralph Havenstein said the willingness of the asset managers to underwrite and price the entire rights offer, in advance of a rights offer circular being issued, has allowed the company to remove uncertainty around the process and to set the subscription price.
“As a result, the need for the standby underwrite agreement concluded with our banks fell away. Receiving support from prominent asset managers who represent our shareholders - Allan Gray, Coronation, Foord, Kagiso, Old Mutual, and Prudential - affirms the investment case for Omnia as we continue to strengthen our financial position and execute on our strategy.”
Omnia is in the process of finalising and obtaining the required approvals for its rights offer circular, which is currently planned for publication at the end of the month.