Omnia to acquire 90% of Umongo Petroleum
Omnia, through its subsidiary, Omnia Group, has entered into a sale of shares agreement with Lubricant Additives Solutions and Technology and Autumn Storm Investments 294, for 90 percent of the ordinary shares of Umongo Petroleum, for a maximum aggregate acquisition consideration of R780 million. The remaining 10 percent shareholding in Umongo will continue to be held by Autumn Storm, an entity in which the current CEO, Boston Moonsamy, is a shareholder.
- Omnia CFO Wayne Koonin walked away with the Finance & Technology Award at last night's CFO Awards 2017.
Omnia, through Omnia Group, will acquire the shares on a debt free, cash free basis. The acquisition consideration, for a 90 percent interest, is apportioned between an upfront cash payment of R618.5 million, an earn-out cash payment of up to a maximum aggregate amount of R121.5 million payable and a retention amount of R40 million.
Moonsamy will remain CEO for five years, while Mahmoud Homayoun, the founder and current Chairman of Umongo, will remain involved in Umongo as a member of the board and as a specialist advisor for four years. Other key members of the Umongo management team will remain with the business.
Pictured: Omnia CFO Wayne Koonin