Omnia’s shares have slid to a 10-year low 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 group said in April, amid talks with lenders, that “there is no requirement for any unscheduled repayment or recapitalisation”. 

But on Thursday afternoon it said it planned to raise R2bn in new equity.

“The process with the principal debt providers is still ongoing and is progressing well,” it said.

“As part of this process, Omnia has determined that it is prudent to reduce its overall gearing.”

This would require a rights offer to shareholders of R2bn.

Further details would be provided when the company’s financial results are published in late June.