JOHANNESBURG – The share price of Omnia Holdings slid 6 percent despite it announcing that it had raised R2 billion via a rights offer, which would be used to repay its debt.
The share price dipped to a low of R25.07 at 11.45am on Wednesday.
The heavily indebted JSE-listed diversified chemicals group said it had completed the rights offer of 100 million new ordinary Omnia shares at a subscription price of R20 per rights offer share.
The rights offer was fully underwritten by a number of asset management companies whose clients were shareholders of Omnia including Allan Gray, Coronation, Foord, Kagiso, Old Mutual and Prudential.
Omnia in June secured a R6.8bn bridge-loan, while net interest-bearing borrowings was at R4.4bn at the end of March.