# chip earnings — X 热门讨论 (2026-09-14 11:40 UTC)
## @smalltalkdaily (Smalltalkdaily Research) · 09-14 07:43 · ♥31 ↻8 💬1 Indian explosives giant Solar Industries makes an all-cash R134.50 bid worth R21.8 billion for South African fertilizer& explosives business $JSEOMN Omnia
This, I under stand, was an unsolicited bid, and the actual price was R142.00 but is R134.50 given #OMN went ex-dividend R7.50 recently
Solar, a family-owned business started in 1995 is a leading explosives player in india producing 600,000 tons per annum with substantial defense and military interests
Its Mcap is US$21 billion thus the acquisition of #OMN is equivalent to 6% of its Mcap = US$1.35 billion
I understand that both Omnia and Solar have similar revenues BUT Solar - given its Indian listing - has a more aggressive PE valuation - thus the Solar deal to acquire #OMN is instantly accretive
See the price chart I publish below showing how hard Solar Industries has grown in value the past 5-years
In my interview last Friday with @News24_Business on the #OMN cautionary with @KGbdl I suggested a buy-out price between R135 to R140 ... so, @smalltalkdaily was fairly on the mark in my estimate given my legacy coverage of #OMN and its undervalued nature relative to global peers
I understand that Solar will keep the #OMN business intact & bought the asset as they want to grow it globally
In detonators, Solar manufacture 250m per annum versus the 3-4m that #OMN produce. Solar also has a factory in Zimbabwe that will be melded into #OMN
The rationale for deal is for Solar to grow further internationally, take #OMN into new markets & Solar wants a new business pillar = #OMN expertise in fertilizer
The top shareholders in #OMN are The PIC, Allan Gray, Camissa and M&G and I'd suggest they (may) be happy with the take-out price given the premium
Back in November 2025 when #OMN was R76.57, I issued a further buy with a target of R92.50. That was an upgrade from a prior recommendation where than R80,00 target had been met & exceeded. @smalltalkdaily been bullish on #OMN since February 2023 (R62.20)
#OMN has come a long way in 7-years. Many may remember the R20.00 right issue in September 2019 to rescue the company's debt pile
Then (new) CEO Seelan Gobalsamy has overseen a dramatic turnaround in the company's fortunes - he does not get a salary only share options
In the 7-years, earnings have risen steadily, cash generation has been strong enabling R40.00 in dividends and special dividends to be paid back to shareholders
Sad to see a blue-chip mid-cap stock exit the @JSE_Group likely in Q2 2027, but if a global player sees value in a local stock where investors don't... that's the nature of the game > 引用 @JSE_SENS: Joint announcement of the firm intention of Solar SA Investments Proprietary Limited to make an offer to acquire all of Omnia’s issued ordinary shares (other than treasury shares), the subsequent delisting of all Omnia shares and withdrawal of cautionary https://t.co/hCO3M6kjYm https://x.com/smalltalkdaily/status/2099403655078158846