Indian explosives manufacturer Solar Industries India (NSE:SOLARINDS) has offered R21.8 billion ($1.89 billion) in cash to acquire South African mining and agricultural services group Omnia Holdings (JSE:OMN).
The offer values Omnia at R134.50 per share, representing a 30.98% premium to its closing price on 10 September, before the company disclosed that takeover discussions were underway. It also represents a 35.73% premium to Omnia’s 30-day volume-weighted average price up to that date.
Solar is making the offer through Solar SA Investments, an indirect wholly owned subsidiary established in South Africa. If the scheme of arrangement is implemented, Solar will acquire all Omnia shares and the company will be delisted from the Johannesburg Stock Exchange and A2X Markets.
Omnia’s board says it intends to recommend the proposal to shareholders, subject to its legal and fiduciary duties. The cash consideration is supported by an irrevocable bank guarantee.
The transaction remains subject to shareholder and regulatory approvals.
The combination would expand Solar’s international mining-services position through Omnia’s BME division, which supplies bulk explosives, electronic initiation systems, and blasting technology.
The deal also comes as African countries seek additional investment in mining and critical minerals production. Solar expects the expanded footprint to increase its African mining revenue several-fold from the 2028 financial year, according to Reuters.
Solar Industries manufactures industrial explosives and initiating systems for mining and infrastructure customers.
Omnia operates mining and agriculture businesses across several international markets.
Write to France Pinzon at Mining.com.au
Images: Omnia Holdings
