Omnia closer to getting big refund
Dismissal of Foskor’s high court appeal makes little impression on shareholders after a decade of wrangling over phosphoric acid
Chemical products group Omnia has moved one significant step closer to securing payment of a R60m refund due to it in terms of a Competition Tribunal consent agreement with Foskor. It may also be closer to securing lower prices for its phosphoric acid inputs. But shareholders seemed unmoved by this week’s favourable high court ruling, with the share strengthening only marginally during trade on Wednesday and Thursday. The dispute, which relates to Foskor’s pricing of phosphoric acid, is unfolding in front of the competition authorities. In October, after an approach from Foskor to have the consent agreement altered, the tribunal encouraged the two parties to seek help from a mediator. In a directive to the parties, the tribunal said if they were unable to agree on a mediator, they were each to submit three names to the tribunal chairman for him to nominate one. Legal action over the terms of the consent agreement and the refund forced Omnia to restate its financial 2016 results, wit...
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