Solar Industries Expands with Acquisition of Problast BS (Pty) Ltd

On July 05, 2024, Solar Industries India Limited, a global leader in energetic materials for mining, defence, and space applications, acquired a majority stake in South Africa’s Problast BS (Pty) Ltd through its subsidiary, Solar Mining Services (Pty) Ltd.

Since 2016, Problast BS (Pty) Ltd has been renowned in South Africa for its blasting solutions. This acquisition enhances Solar Industries’ presence in Africa, leveraging Problast’s manufacturing expertise in bulk emulsion, explosives accessories, and delivery systems.

The acquisition of Problast BS (Pty) Ltd by Solar Industries India Limited does not fall under related party transactions, and there is no interest from the promoter, promoter group, or group companies in the entity being acquired.

Objective of Acquisition

The acquisition aims to support Solar Industries’ strategic expansion into Africa, aligning with its long-term business objectives.

Acquisition Details

• Completion Timeline: The acquisition is expected to be completed by December 2025.
• Nature of Consideration: The acquisition will be conducted in accordance with South African laws through a mutually agreed-upon transaction.
• Cost of Acquisition: The acquisition cost has been mutually agreed upon, but the enterprise valuation details remain confidential.
• Percentage of Shareholding/Control Acquired: Solar Mining Services Pty Limited, a step-down subsidiary of Solar Industries India Limited, has agreed to acquire a 73.99% stake in the target company.

About Problast BS (Pty) Ltd

Problast BS (Pty) Ltd is renowned as a leading provider of blasting solutions, particularly in open-cast mining, drilling, blasting, and loading. It operates within the explosives service industry. For the financial year 2022-23, Problast BS (Pty) Ltd reported a turnover of ₹346 crore.

About Solar Industries Ltd

Solar Industries is a prominent domestic producer of bulk and cartridge explosives, detonators, detonating cords, and related components used in mining, infrastructure, and construction. They also manufacture high-energy explosives, delivery systems, and pyrotechnic fuses for the defence sector. The company’s products are utilised across various industries globally, spanning over 51 nations. Solar Industries holds a significant position in the explosives market, capturing approximately 24% of the industry share.

On July 5, 2024, the share price of Solar Industries Ltd opened at ₹12,400.00, touching the day’s high of ₹12,460.90 as of 02:07 PM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.