Solar SA Investments makes R21.8bn offer to acquire Omnia
Proposed deal would bring Omnia’s BME mining business into Solar Group’s international explosives platform and delist the company from the JSE and A2X
Solar SA Investments Proprietary Limited has made a firm intention offer to acquire all of Omnia Holdings Limited’s issued ordinary shares in an all-cash transaction valued at approximately R21.8 billion.
The offer was announced by Omnia on September 14 following a cautionary announcement published on the Stock Exchange News Service (SENS) on September 11. It will be implemented through a scheme of arrangement.
Should the scheme be implemented, Omnia’s shares will be delisted from the JSE Limited and A2X Markets.
The proposed transaction is expected to accelerate growth across Omnia’s Mining and Agriculture businesses through enhanced technology, research and development, innovation, scale, market access and customer reach.
It is also expected to strengthen Omnia’s manufacturing and supply chain capabilities, enhance resilience and unlock opportunities driven by greater scale.
“This is an important milestone in Omnia’s 73-year history. Built on a proud South African heritage and entrepreneurial spirit, Omnia has grown from an agriculture business into a diversified international group, drawing on decades of expertise and innovation to build businesses such as BME, and take South African innovation, expertise and capability to markets around the world.
“That same entrepreneurial spirit is reflected in Solar Group, which has grown from a single-site business in India into a leading international industrial group. Bringing together Omnia’s manufacturing and supply capabilities, technology, brands and customer relationships with Solar Group’s scale, R&D capabilities, commercial reach and international presence creates a powerful platform to accelerate BME’s ambition to become a global mining solutions business of scale. It also provides opportunities to expand Omnia’s sustainable Agriculture solutions into new markets,” said Omnia Group CEO Seelan Gobalsamy.
Speaking about the offer, Manish Nuwal, Managing Director and Chief Executive Officer of the Solar Group, said the company had long admired Omnia.
“We have great respect for what the Omnia team has created and see significant potential to build on these strengths as part of the Solar Group.
“The proposed transaction represents an important step in our international growth ambitions. BME brings a strong global mining platform and leading technology in electronic initiation systems that complement our existing industrial explosives business, while Omnia Agriculture provides Solar Group with an established position in integrated crop nutrition and biologicals – an attractive sector underpinned by the long-term importance of food security, sustainable agriculture and farm productivity,” said Nuwal.
The proposed acquisition remains subject to the fulfilment of the applicable conditions to the scheme, including the required shareholder and regulatory approvals.
If implemented, the transaction will bring Omnia’s 73-year history and established African and international operations into the Solar Group, creating a larger platform spanning mining explosives and solutions, agriculture and related industrial capabilities.
