Omnia misled investors on rights issue, says analyst
Company's about-turn has 'broken trust' as its share price falls sharply
Chemicals and fertiliser maker Omnia broke investors’ trust and misled the market for mulling a rights issue just over a month after it ruled out the need to issue fresh equity to cut debt, an analyst said.
Omnia’s shares slid to a 10-year low in early trade on Friday after the group said it needed to issue fresh equity to cut debt.
After losing 12.2% on Thursday, shares in Omnia slipped another 5.4% to R44.07 on Friday morning, the worst level since February 2009. The shares recovered to close 5.04% down at R44.25. ..