Trade of the Month: Omnia Holdings vs AECI
New acquisitions look set to play a key role in Omnia-AECI performance race
AECI and Omnia have been on the acquisition trail of late, clinching two deals each that have an important bearing on the companies’ respective investment merits. Omnia set the ball rolling last May with the acquisition of a 90% stake in Umongo Petroleum for an initial R618.5m. The deal valued Umongo at an undemanding 7.2 p:e based on its net taxed profit of R77m in the 12 months to February 2017. Subject to a three-year earnout, the maximum amount payable for Umongo is R780m. The effective date of the deal was December 1 2017. Umongo, which has been slotted into Omnia’s chemicals division, brought with it the distribution of Chevron oil additives, base oils, oil and lubricant products in SA and sub-Saharan Africa. At the time of the deal, Omnia group MD Adriaan de Lange said: "We see a lot of growth opportunities in SA and the rest of Africa. We have operations in 17 African countries outside SA and know how to grow businesses in Africa." Omnia struck again in March, announcing it ...
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