Ellah Lakes Plc has signed a produce offtake agreement with Pure Flour Mills Limited (PFM), a subsidiary of De United Foods Industries Limited, makers of popular noodles pasta, Indomie, for the initial supply of a minimum of approximately 5000 metric tonnes of cassava to its processing facility in Edo State.
The agricultural firm informed the investing public and market regulators in a disclosure signed by Kenechi Ezezika, the company secretary and filed at the Nigerian Stock exchange on Monday.
The company also disclosed that the transaction is associated with a potential buyout of the 100 per cent shares of an oil palm processing company on which the company expects to commence delivery of the initial tonnage from the yields of the 2020-2021 harvesting season, adding that although, a binding term has been agreed upon, completing the transaction was subject to approvals from the appropriate regulatory bodies.
This latest development is coming just within a month of Ellah Lakes disclosure of its plans to acquire the entire assets and liabilities of Telluria Limited, an oil palm processing company in Delta State, as part of its expansion plans.
The company also stated that it would release appropriate market update in line with its regulatory disclosure obligations, adding that it has alerted the general public to be cautious when dealing with the company’s securities.