the g spot
The road to fixing Omnia
We asked FD Seelan Gobalsamy how Omnia won them over
Pick an SA Inc share and chances are you’ve lost money in the past 12 months. So it is with Omnia, whose stock has sunk under a mountain of debt, tumbling from R128 this time last year to its present level of below R35. But its bigger investors have now rallied together to back a R2bn R20 a share rights offer. We asked FD Seelan Gobalsamy how Omnia won them over.
Let me take a step back … What Omnia did was invest in its own capability and its own plant and it put R780m in a new plant in Sasolburg; it expanded organically by investing in a number of territories and by building its explosives business, and at the same time it did these acquisitions which have been widely spoken about — Oro Agri and Umongo.