Barely 15 months after the full acquisition of Telluria Farms in 2019, Ellah Lakes Plc, Nigeria’s leading oil palm producer, has announced the potential acquisition of IMC Plantations Limited in a transaction that will involve a 100 per cent purchase of the shares of the oil palm processing company with substantial assets in Delta state, Nigeria for undisclosed transaction fee.
The company, in a disclosure notice to the Nigerian Stock Exchange titled, “Ellah Lakes Plc & Plantations acquisitions-update”, and signed by Oake Legal, which serves as the company secretary, said both parties are already into exclusive discussions regarding a potential transaction between the two oil-producing firms, which is subject to regulatory approvals and execution of the definitive agreement.
In 2019, Ellah Lakes, an agribusiness company based in southern Nigeria, acquired Telluria farms in a deal made for the furtherance of the business diversifications plans and also to strengthen the company’s balance sheet, enhance operations as well as the provision of access to new markets.
“Though a binding term sheet has been agreed, the completion of the proposed transaction is subject to regulatory approvals and execution of a definitive agreement. Ellah Lakes Plc will update the market appropriately and in accordance with its disclosure obligations,” the notice published on the NSE website further reads.
Meanwhile, the company has advised the investing public and shareholders on the need to exercise patience when dealing in Ellah Lakes Plc securities until the company makes a full announcement on the proposed acquisition.