Omnia prices R2bn rights offer, to publish circular at month-end

12th August 2019

By: Marleny Arnoldi

Deputy Editor Online

     

Font size: - +

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.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION