Omnia is a manufacturer of chemicals used in agriculture (fertilisers), mining (explosives) and various industries. It operates primarily in South Africa, but its products are sold throughout Southern Africa and abroad.
In its latest financial statements for the year to 31st March 2026 the company reported revenue up 6% and headline earnings per share (HEPS) up 21%. The company benefited in some ways from the war in Iran and the closure of the Strait of Hormuz because that restricted the flow of agricultural chemicals onto world markets resulting in higher prices. Omnia was able to pay a dividend of 470c for the year, plus a special dividend of 280c. During the year it also bought back and cancelled 187436 of its own shares at an average price of 6465c per share returning a further R12,1m to shareholders.
This is one of the companies that was very hard hit by the COVID-19 pandemic, and its share price fell to a low of 1536c in May 2020. We published an article about it on 2nd September 2019, drawing attention to the fact that it had been consistently trading well below its net asset value (NAV) for some time. Obviously, when a profitable listed company trades below its NAV, it generally becomes a potential take-over target for both local and international investors.
For the next five years Omnia continued to strengthen and diversify its position. By March this year it was growing profits in all divisions and had a strong balance sheet. This attracted the attention of a large international chemicals company operating out of India, The Solar Group, who have now made an offer to buy 100% of Omnia’s ordinary shares for 13450c each. Omnia will delist from the JSE once the acquisition scheme by Solar SA Investments is implemented.
The cautionary announcement was published on the Stock Exchange News Service (SENS) on 11th September this year and the share price immediately rose sharply in response. The fact that it did not rise earlier indicates that there was little or no insider trading associated with this announcement. Consider the chart:
Omnia (OMN) : September 2025 - 25th of September 2026. Chart by ShareFriend Pro.
In anticipation of good results at the year-end in March 2026, we added Omnia to the Winning Shares List (WSL) on 12th January 2026 at a price of 8207c per share. At the time we felt that the company was trading well below its value given its track record and performance.
The Solar Group sells its products in 90 countries around the world and has manufacturing facilities in 11 countries. There are considerable synergies flowing from the acquisition, especially considering that Solar does not appear to be in agricultural sector. Omnia’s expertise and product knowledge will add considerably to the group over time.
Taking into account that an investor would have received 750c in dividends, the decision to buy into Omnia when we added it to the WSL would have yielded a return of 13450c + 750c – 8207c = 5993c or 73% in a period of much less than a year. Altogether a very satisfactory investment!
