Omnia Holdings gets $1.3 billion buyout bid from India’s Solar Industries 

Omnia Holdings, a South Africa-based diversified chemicals group, has received a R21.8 billion ($1.3 billion) takeover offer from India’s Solar Industries, giving the Indian group a larger foothold in Africa’s mining and agriculture markets. 

Solar Industries offered R134.50 ($8.27) per Omnia share, a 14.3% premium to the Johannesburg-listed company’s Friday closing price. Omnia shares rose about 15% after the offer, lifting its market value to roughly R19.1 billion ($1.2 billion).

Solar SA Investments, an indirect wholly owned subsidiary of Solar Industries, will acquire all outstanding Omnia shares, subject to regulatory approvals and the approval of Omnia shareholders.

Solar expands its African footprint 

For Solar Industries, the Nagpur-based company led by billionaire Satyanarayan Nuwal, the transaction would deepen its presence in South Africa, where it already controls Problast BS. The acquisition would also give Solar access to Omnia’s operations in Canada, Brazil, Australia and Indonesia, Omnia CEO Seelan Gobalsamy said. 

Omnia said Friday that it was in advanced talks over a potential acquisition of all its ordinary shares. 

“The deal is about growth,” Gobalsamy said in an interview Monday. “It’s about accelerating growth to put balance sheets together.” 

Solar’s shares have risen more than 80% this year, giving the company a market value of about 2.02 trillion rupees ($21 billion). 

The company already operates in Ghana, Nigeria, Tanzania and Zambia. Buying Omnia would strengthen its position in South Africa, one of Africa’s largest mining and agricultural economies and a major global exporter of citrus.

Omnia brings global operations 

Founded in 1953 and headquartered in Sandton, Omnia has built businesses spanning mining, agriculture and chemicals. The company is listed on the Johannesburg Stock Exchange and A2X Markets. 

Omnia operates in more than 20 countries and distributes products to more than 40 countries through more than 70 distribution centers. It employs more than 3,500 people. 

Its latest results show why the business has attracted acquisition interest. Revenue rose 6% to R24.2 billion ($1.4 billion), helped by higher volumes in its Agriculture and Mining divisions. 

Operating profit climbed 28% to R2.2 billion ($136 million), while the operating margin reached 9%. Headline earnings per share increased 21% to R8.49 ($0.52). 

Omnia also reported R1.7 billion ($105 million) in cash, underscoring the company’s ability to generate cash while maintaining disciplined capital spending.

The proposed $1.3 billion buyout marks one of the more significant recent cross-border acquisitions involving a South African industrial company and gives Solar Industries a broader platform in global mining, agriculture and chemicals.