Indian giant snaps up 73-year-old South African company for R21.8 billion

Solar Industries India agreed to acquire South African industrial-explosives and fertiliser firm Omnia for R21.8 billion, seeking to expand in the continent’s mining and agriculture industries. 

The Nagpur, India-based company offered R134.5 per share, a 14.3% premium to Friday’s closing price.

Omnia surged as much as 7.5% on Monday and traded 4.2% higher at 9:20 a.m. in Johannesburg, giving it a market value of R19.8 billion. 

For Solar Industries, led by billionaire Satyanarayan Nuwal, the acquisition will be its latest in South Africa, where it controls Problast BS.

The purchase will help the Indian firm expand across southern Africa and get access to Omnia’s facilities in Canada, Brazil, Australia and Indonesia, Omnia CEO Seelan Gobalsamy said.

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

Shares of Solar have surged more than 80% this year, valuing the firm at 2.02 trillion rupees ($21.1 billion). 

Solar already has operations in Ghana, Nigeria, Tanzania and Zambia.

Buying Johannesburg-based Omnia gives it access to South Africa, which is home to the world’s biggest platinum mines, is the continent’s biggest corn grower and the largest global exporter of citrus. 

The Indian firm has “immense technology” such as drones and autonomous robotics that can assist Omnia in its agriculture and mining businesses, said Gobalsamy. 

“We are accelerating our agri business in Australia to all parts of the world — that is a biologicals business focused on crop health,” said Gobalsamy.

“We see this opportunity to grow that even faster. Solar has a very strong position in India that could help us,” he said. 

Omnia’s earnings climbed 21% in the year through March, with operating profit roughly split between its mining and agricultural units.