Ellah Lakes Plc has received approval from the Securities and Exchange Commission (SEC) for its N235 billion public offer, which is expected to open on November 10.
At a media parley in Lagos, Managing Director Chuka Mordi said the company plans to issue 18 billion new shares as part of the offer. He explained that proceeds from the raise will fund the acquisition of Agro-Allied Resources and Processing Nigeria Limited (ARPN).
Deputy Managing Director Paul Farrer added that Ellah Lakes plans to install a 20-tonne-per-hour mill at the ARPN facility in Edo State. The new plant, he said, will complement the existing 6-tonne-per-hour mill at the company’s oil palm plantation in Iguelaba, Edo State.
Mordi described the planned offer as “a definitive statement of intent,” saying the capital will help Ellah Lakes “solidify its position as the undisputed leading indigenous agro-industrial giant in West Africa.”
Read also:Ellah Lakes on a bull run after Tolaram’s ARPN acquisition
Since Mordi’s takeover in 2019, Ellah Lakes has undergone a steady transformation driven by deliberate capital raises and strategic mergers and acquisitions (M&A). Each transaction, he said, was aimed at rebuilding and strengthening the company’s balance sheet.
That transformation began with the 2019 reverse acquisition by Telluria Limited, which injected valuable oil palm assets into Ellah Lakes and set the stage for vertical integration. It was followed by a N2.9 billion rights issue and a debt-to-equity conversion, further repositioning the company for growth.
What Ellah Lakes gains from the ARPN acquisition
Through the ARPN deal, Ellah Lakes is set to add nearly 20,000 hectares of farmland and a $25 million cassava processing plant to its portfolio, according to Farrer.
He said ARPN brings a robust land bank and processing assets that “align perfectly with the company’s vision of vertical integration and sustainable growth.” Integrating these assets, he added, will “reinforce Ellah Lakes’ focus on palm oil and cassava as twin growth pillars.”
The ARPN portfolio includes 9,700 hectares of cultivated farmland, comprising 6,300 hectares of oil palm and 2,100 hectares of cassava, as well as 10,400 additional hectares for future expansion.
Read Also: Ellah Lakes breaks silence on years of investment with revenue now in sight – Businessday NG
Farrer noted that the market opportunity in palm oil remains vast, as domestic production meets only about 60 percent of Nigeria’s demand, leaving an import gap worth hundreds of billions of naira each year.
He explained that Ellah Lakes’ strategy goes beyond crude palm oil production. The company, he said, is focused on integrated processing, crop diversification, and higher value-added products to capture more of the agricultural value chain.
“The ARPN acquisition brings a strong mix of productive assets and untapped potential,” Farrer said. “About 60 percent of the oil palms are already in their peak productive years, with another 30 percent nearing maturity, translating into immediate and growing cash flows.”
He added that the $25 million cassava plant offers “world-class capability,” with 600 metric tons of daily processing and 300 tons of flour milling capacity, a facility that would be far more expensive to replicate today.
“Importantly,” he said, “the guaranteed uptake agreements already in place provide immediate market access and predictable revenues.”
