South African chemicals, mining, and fertilizers group Omnia Holdings Ltd. reported that it has received a nonbinding indicative offer for Oro Agri SEZC – a manufacturer of agricultural adjuvants, pesticides, and foliar nutrients for agricultural, greenhouse, nursery, and turf applications, with sales in over 80 countries – that it acquired on April 30, 2018 (GM June 28, 2018).
In a June 22 trading statement and update, Omnia said Oro Agri is not a business that it considered to be for sale, but the offer received “deserves the boards’ consideration.”
“An engagement process under an agreed exclusivity with the undisclosed party is currently underway,” said Omnia. “Shareholders will be advised if the engagement process progresses to the point of a potential transaction that may have a material effect on the price of Omnia’s shares.”
Omnia paid $96 million for Oro Agri, with the acquisition aimed at expanding the South African company’s global reach in agricultural markets.
The South African company has been working on turnaround and restructuring plans, which in fiscal 2020 (April 1-March 31, 2020) have focused on creating a sustainable platform for growth while addressing cost reduction, effectively managing working capital, and ensuring a return on capital previously invested.
Omnia said it expects to post annual headline earnings per share (EPS) – the main profit measure used in South Africa – of between 177 cents and 196 cents (approximately 10 to 11 U.S. cents at current exchange rates) for FY2020, compared with a headline loss of 112 cents a year earlier.