Ellah Lakes Plc has announced an agreement to acquire Agro-Allied Resources & Processing Nigeria Limited (ARPN). The transaction is expected to significantly expand its palm oil production footprint.
The agro-industrial company which has turned its focus to the oil palm industry disclosed this on October 3 in a corporate disclosure. According to the release, the acquisition involves taking over 100 percent of ARPN from ARPN PTE Ltd, a Singapore-based entity jointly owned by Tolaram Africa and Valuestar Holdings.
The deal follows shareholder approval at Ellah Lakes’ Extraordinary General Meeting in July to raise N250 billion through equity offerings. This deal is expected to give the company control of 11,783 hectares of cultivated land, including 6,280 hectares of oil palm plantations and 2,093 hectares of cassava plantations. It also covers an additional 10,393 hectares of uncultivated land.
According to the release, the age profile of the plantations positions the company for sustained output. It noted that 60 percent of the oil palms are in peak productivity, 30 percent between two and four years, and the remainder under two years.
Read also: Ellah Lakes sets Dec. deadline to acquire 100% stake in ARPN
According to the company, the acquisition will immediately boost its scale and processing capacity. it will also unlock long-term growth opportunities in crop diversification and vertical integration. The transaction is, however, subject to regulatory clearance from the Federal Competition and Consumer Protection Commission (FCCPC), with completion targeted for December 2025.
Chuka Mordi, Chief Executive Officer of Ellah Lakes, described the deal as “a defining step” in the company’s transformation journey.
“This acquisition will more than double our production footprint, accelerate earnings growth, and position us as a national champion in agro-industrial production,” Mordi said. “We are excited about the immediate and long-term value this transaction will deliver to our shareholders and to Nigeria’s broader food security objectives.”
The company has been actively pursuing growth opportunities this year. In July, its shareholders voted in favour of a planned N250 billion capital raise. According to the management, the raise is needed to strengthen Ellah Lakes’ balance sheet and provide the funding capacity needed to execute its expansion strategy.
If successful, the equity raise and ARPN acquisition will place Ellah Lakes in a stronger position to compete in Nigeria’s food and agro-processing industry.