Omnia Holdings sold in $1.36bn all-cash deal

India's Solar Industries said on Monday that its subsidiary will acquire South Africa's Omnia Holdings in an all-cash deal worth about $1.36 billion, as the explosives and ammunition manufacturer looks to expand its global mining footprint.

Solar SA Investments, an indirect wholly owned subsidiary of Solar Industries, will acquire all outstanding shares of the Johannesburg-listed group, subject to regulatory approval and the consent of Omnia shareholders, the company said in a statement.

Bloomberg reported that Solar offered R134.50 a share – a 14.3% premium to Friday's closing price – valuing the deal at roughly R21.8 billion.

Omnia's shares jumped 15% on the JSE on Friday, taking its market value to around R19.1 billion.

Nagpur-based Solar Industries manufactures industrial explosives and initiating systems for the mining, infrastructure, construction, defence and space sectors, and operates more than 40 manufacturing facilities worldwide.

Omnia, which has been in operation for 73 years, supplies products and services to the mining and agriculture sectors through its BME and agriculture divisions, operating in 23 countries and serving customers in more than 40. It reported revenue of about $1.41 billion for the year ended 31 March, and holds a net cash-positive position.

CNBC Africa reports that the deal comes as African countries step up efforts to boost output and draw investment into critical minerals, citing copper-rich Zambia's push to nearly triple production as metal prices climb.

Solar said it expects the enlarged group to lift its Africa mining revenue several times over from its 2028 financial year, giving it a broader platform on the continent as it extends its geographic reach beyond India.

ADDITIONAL SOURCE: Reuters