CAPE TOWN – Diversified chemicals group Omnia Holdings’s share price shot up more than 9 percent to R54.71 on Tuesday morning after it announced plans to restructure debt.

Omnia said in a trading statement in March that it expected to report a headline loss of R134 million in the year to March 2019, from headline earnings of R670m the year before, partly because of higher finance charges to fund debt that was raised to pay for acquisitions and new plant.

In March 2018 international bio-pesticide, nutrients and soil conditioner manufacturer Oro Agri SEZC and Oro Agri SA were acquired for $100m (R1.4 billion). In addition, a R695m nitrophosphate plant was being built.

The group said, however, in a statement it was in talks with its major debt providers and an appropriate debt structure was being assessed.

The group would release another trading statement once it was reasonably certain what impact the debt restructuring would have on its full year and comparative results. 

The results are expected to be published on or about June 25,2019.