Solar Industries proposes US$1.3B acquisition of Omnia
Solar Industries has a market cap of approximately ₹2.02 trillion (about US$21 billion) and has risen by about 80% over the past year.
SOUTH AFRICA – India-based Solar Industries has proposed acquiring South African chemicals and fertilizer group Omnia for R21.8 billion (approx. US$1.34 billion), a deal that would delist Omnia from the JSE, according to a joint statement published on September 14.
The deal remains pending regulatory approval and further deliberations by Omnia’s shareholders, with conditions to be met before the longstop date of 31 July 2027.
If approved, Solar Industries would acquire all of Omnia’s issued ordinary shares at R134.50 (approx. US$8.24) per share, a 14.3% premium over the company’s Friday closing share price.
The agreement would see Omnia delist from the JSE, where it first listed in 1980, and terminate its secondary listing on A2X. “Following implementation of the Scheme, the listing of Omnia’s shares on the Main Board of the securities exchange operated by the JSE and on A2X Markets will be terminated,” the companies said.
Omnia CEO Seelan Gobalsamy said the acquisition aimed to drive growth. “The deal is about growth,” Gobalsamy said. “It’s about accelerating growth to put balance sheets together.”
He added that Solar Industries can give Omnia access to technologies such as drones and autonomous robotics, supporting its involvement in the mining and agricultural sectors.
“We are accelerating our agribusiness in Australia to all parts of the world; that is a biologicals business focused on crop health,” he said. “We see this opportunity to grow even faster. Solar has a very strong position in India that could help us.”
On the other hand, Omnia would not be Solar Industries’ first South African acquisition; it already owns Problast BS, a mining explosives company.
The latest acquisition will help Solar Industries expand across several continents through Omnia’s facilities in Canada, Australia, Brazil, and Indonesia, complementing its existing operations in Ghana, Nigeria, Tanzania, and Zambia.
Solar Industries has a market cap of approximately ₹2.02 trillion (about US$21 billion) and has risen by about 80% over the past year. Founded in 1995 by Indian billionaire Satyanarayan Nuwal, the company is India’s largest manufacturer and exporter of industrial explosives.
The company reported revenue up 6% to R24 billion (US$1.3 billion) in the last financial year, with operating profit up 28%.
However, despite its strong results, Omnia faces pressure from the ongoing war in the Middle East and the resulting closure of the Strait of Hormuz.
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