…ratify acquisition of 100% stake in GOPDC worth $124.92m
…proposes Rights Issue
When Presco Plc shareholders meet at the company’s Annual General Meeting (AGM), scheduled to take place on Tuesday, August 19, 2025, the Board will propose that shareholders approve the acquisition of SOP and ratify the Acquisition of GOPDC.
In line with this objective, a detailed review of the strategic opportunities available to the Company was explored and the Board reached a decision to acquire 100 percent equity stake in GOPDC for $124.92million and proposes to acquire SOP for a consideration of $46.71million.
The Board also proposed the issuance of additional capital by way of a Rights Issue – which will be utilised to support the Company’s strategic initiatives, refinance existing debt and also contribute to the settlement of consideration for the acquisition of GOPDC and the Proposed
acquisition of SOP.
As custodians of the leading integrated agro-industrial company in Nigeria, and in line with its responsibility to seek avenues to consolidate this position and pursue opportunistic inorganic growth to achieve its vision to become the most profitable, sustainable and fully integrated edible oils group in the broader Sub-Saharan Africa region, the Board of Directors has focused on identifying the right strategies to drive sustained long-term growth and profitability of your Company.
GOPDC, incorporated in Ghana on December 6, 1995 is an integrated agro-industrial company specialised in the cultivation of oil palm, extraction of crude palm oil and palm kernel oil, production of specialty oils and fats and distribution of refined oil products and a wholly owned subsidiary of
Société d’Investissement pour l’Agriculture Tropicale (Siat SA).
GOPDC is a related party to Presco, being a subsidiary of Siat SA, a key shareholder of Presco.GOPDC operates from two estates in Eastern Region of Ghana, the Kwae Estate and Okumaning Estate, with about 21,000 hectares of oil palm plantations of which 13,000 hectares have been developed for up to 6,000 outgrowers. GOPDC has processing facilities that comprise a 60 mt/ha fresh fruit palm oil mill, a 60 mt/day palm kernel mill, a 100 mt/day refinery and fractionation plant and a palm kernel cake pellet plant. Currently, GOPDC has capacity to produce over 35,000 tonnes of palm oil and palm kernel oil per annum and has a storage capacity of 21,000 tonnes. GOPDC
The Directors of Presco are also of the opinion that the transactions would create significant value for shareholders and relevant stakeholders of the Company for the following reasons amongst others: Increased market share and customer base: The Transactions will position Presco as a large
African conglomerate with an expanded customer base and increased market share within Africa.
Presco’s plantation size is expected to increase by 37 percent from c.43,547 hectares to c.59,760 hectares, further solidifying its position as a leading oil palm producer in Africa; Currency Diversification: Presco currently generates almost all of its revenue in local currency, while GOPDC generates c.41 percent of its revenue from export sales primarily in US Dollars and Euros. The currency diversification mitigates the impact of adverse exchange rate movements on the Company’s financial performance; Economies of Scale: The transactions will strengthen Presco’s competitive position and drive productivity within the Company through cost savings from streamlining its processes; optimising resource utilisation and positioning more effectively to meet the market demands as a consolidated oil palm business; and Long-Term Organic Growth and Strategic Land Bank: The Proposed Acquisition presents a compelling opportunity to unlock significant long-term growth for Presco and deliver substantial
value to shareholders.
By acquiring SOP, Presco can accelerate its expansion from c.43,547 hectares to c.59,760 hectares – an achievement that would typically take 3–5 years organically due to the challenges of land acquisition and capex requirements. SOP’s well-positioned and attractive land bank of over 14,000 hectares provides a strategic advantage, offering a ready platform for scalable and sustainable growth without the delays and uncertainties of securing new land enhancing the maturity profile of Presco’s plantation
The Acquisition and Proposed Acquisition are expected to drive increase market value of the larger entity listed on the Nigerian Exchange Limited (NGX) post the Acquisitions.
Strategic Group Focus: The Proposed Acquisition and Acquisition will support a broader group-wide realignment focused on operational efficiency, specialisation, and long-term value creation. Access to capital: With the expected increase in market value and increased investor confidence, Presco will have improved access to capital through secondary stock offerings and bond issuances post-the Transactions. The synergy between the entities can potentially increase the overall valuation of Presco, thereby making it more attractive to investors.
Enhanced Competitiveness through Complementary Strengths: The enlarged Presco Group will benefit from leveraging individual company strengths and exploiting synergies across the supply chain. bolstering its competitive position in both domestic and regional markets.
