JOHANNESBURG - Diversified chemicals group Omnia Holdings on Monday announced details of its R2 billion rights offer, which is fully underwritten by asset managers, who represent the company's shareholders.
This follows the approval of the necessary shareholder resolutions at the general meeting last month. The subscription price will be R20 per ordinary share and accordingly 100 million ordinary shares will be issued in terms of the rights offer.
The underwriters involved are asset management entities whose clients are shareholders of Omnia, including Allan Gray, Coronation, Foord Asset Management, Kagiso, Old Mutual Investment Group, and Prudential Investment Managers.
Ralph Havenstein, chair of Omnia, said the willingness of the asset managers to underwrite and price the entire rights offer in advance of a rights offer circular being issued, had allowed the group 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," Havenstein said.