Ellah Lakes Plc., Nigeria’s pioneer integrated agro-industrial company, has expressed optimism that its acquisition of 100 per cent shareholding of Agro-Allied Resources & Processing Nigeria Ltd. (ARPN) will strengthen its footprint in the agro-industrial sector.
The Deputy Managing Director of Ellah Lakes Plc., Mr Paul Farrer, expressed the hope at a media parley on Thursday in Lagos.
Farrer said the company intended to acquire and install a 20-tonne-per-hour mill at an ARPN facility in Edo.
This, he said, would complement the existing six-tonne-per-hour mill already operating at Ellah Lakes’ oil palm plantation also in Edo.
Farrer described the acquisition as a pivotal moment for Ellah Lakes, saying that it would strengthen its foothold in Nigeria’s agribusiness sector.
He said the acquired assets included 11,783 hectares of cultivated land 2,093 hectares of cassava plantations, and additional 10,393 hectares of uncultivated land.
“Agro-Allied Resources & Processing Nigeria Ltd., brings a robust land bank and operational assets that align perfectly with our vision of vertical integration and sustainable growth.
“The ARPN acquisition will deliver immediate scale and financial benefits, achieving in months what would have taken years organically, while unlocking significant long-term potential for crop diversification and vertical integration.
“This will deliver value to all stakeholders as it delivers operational and financial scale immediately,” he said.
The Chief Executive Officer of Ellah Lakes, Mr Chika Mordi, said at the event that the company had secured approval from the Securities and Exchange Commission for N235 billion public offer.
Mordi said the proceeds of the offer, to open on Nov. 10, would be used to fund the acquisition of ARPN.
He said the company would issue 18 billion new shares as part of the offer.
“This significant infusion is earmarked for funding a strategic acquisition of a significant agricultural asset to dramatically expand operational capacity and diversify revenue streams.
“This capital raise signals Ellah Lakes’ shift from a rebuilding phase to one of aggressive expansion and technological differentiation, aiming to establish a next-generation agribusiness platform that aligns with Nigeria’s agricultural transformation agenda.
“This ₦235 billion capital raise is a definitive statement of intent. It is our commitment to our shareholders to deliver economies of scale, market resilience, and long-term value creation.
“We are confident that by deploying this capital effectively and executing our clear strategy, Ellah Lakes will solidify its position as the undisputed leading indigenous agro-industrial giant in West Africa,” Mordi said.
He said a key focus of the listing of the additional shares was the company’s successful execution of its vertical integration strategy.
“The commissioning of its six-tonne-per-hour crude palm oil mill is a strategic move designed to build a more robust and scalable revenue model less vulnerable to external supply chain disruptions.
“Ellah Lakes has bolstered its resilience through diversified revenue streams, combining long-term oil palm investments with medium-term cassava cultivation and more immediate revenue from its piggery operations,” he said.
He added that the company would explore available opportunities in the sector to boost value.
Mordi also highlighted Ellah Lakes’ distinctive, multi-dimensional positioning strategy across Nigeria’s agricultural landscape.
“With over 30,000 hectares of land assets spanning Enugu, Edo, Ekiti and Ondo states, the company is geographically diversified, capturing varied climatic advantages essential for its multi-crop operations,” he said.
He said the company had diversified into piggery and cattle rearing to boost market share.
The company was established in 1980 as a fish farming enterprise.
It underwent a strategic shift in 2019 following its acquisition of Telluria Ltd. and repositioning as a vertically-integrated agro-industrial player focused on crop cultivation, processing and value creation.
