Durban - Shareholders in Omnia Holdings, a diversified investment holding company, had voted in favour of a R35.8 million capitalisation award instead of a dividend payout, the group said yesterday.
Major shareholders include Old Mutual, Oasis, Investec and the Marais family.
The capitalisation award, at R29.81 a share, will increase the number of ordinary shares in issue by 1 199 967 to 43.8 million. However, the additional ordinary shares will have only a minimal impact on the group's R1.2 billion market capitalisation.
Listing of the capitalisation shares on the JSE Securities Exchange will be amended with effect from today.
Rod Humphris, the managing director, said the cash being retained by the group would strengthen the balance sheet and provide funding for growth opportunities as they arose.
"The market has given Omnia ... a vote of confidence," he said.
The group has provided about 700 more jobs with last year's R630 million acquisition of Prochem, a chemical distribution group, where no staff were retrenched.
"Omnia is in a consolidation phase as Prochem and two smaller acquisitions are digested," Humphris said.
The group acquired a specialist fertiliser company in Australia and a French electronics detonator firm.
An analyst, who asked not to be named, said recently that Prochem would reduce earnings volatility as it had given Omnia an exposure to a range of industries, reducing its dependence on the agricultural sector.
Humphris said Omnia would continue to strengthen its business in all three sectors in which it operated.
While this would be mainly through consolidation and organic growth, it would not rule out the possibility of further suitable acquisitions, should opportunities arise, he said.
Minority shareholders who voted for a dividend will suffer a slight dilutionary effect in the value of their shares but the majority who opted for the award will not be affected.
Omnia rose 15c to R29.40 while the chemical sector lost 0.6 percent.