Omnia receives R21.8bn buyout offer from India’s Solar Group
Indian-based Solar Group has made a R21.8bn all-cash buyout offer for the South African fertilizer and explosives company Omnia. If the deal proceeds, Omnia will be delisted from the JSE and A2X markets.
Why it matters
This acquisition represents a significant cross-border investment that would consolidate Solar Group's global footprint in the mining and industrial sectors.
Fertiliser and explosives group Omnia has received a R21.8bn all-cash buyout offer from Indian company Solar Group, the company said on Monday.
On Friday Omnia’s shares surged to their highest levels in more than five years, shooting up almost 15% after the group issued a cautionary announcement confirming it was in discussions regarding a potential offer.
Solar is offering R134.50 per share — a premium of 30.98% to Omnia’s closing share price of R102.69 on the JSE on September 10, the last business day before the cautionary announcement.
It is a premium of 14.30% to Omnia’s closing price on the JSE of R117.67 on Friday — the last business day prior to Monday’s announcement — and a premium of 35.73% to its 30-day volume-weighted average price (VWAP) of R99.09 up to and including September 10.
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