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Loss-making Ellah Lakes Plc says it has paid N1.5 billion as deposit into an Escrow account towards the acquisition of 100% of the equity interest in Agro-Allied Resources & Processing Nigeria Limited.
The Company entered into a contract to acquire 22,000 hectares of agricultural farm land with mature bearer plants and a cassava plantation in 6,280 and 2,093 hectares respectively.
The initial deposit of ₦1.5 billion made before year end will be applied toward the purchase price, Ellah Lakes said.
The acquisition will be financed through the issuance of new shares, as approved by shareholders at an Emergency General Meeting held on 25 July 2025.
The capital raise of ₦250 billion is expected to be completed in the next financial period. Ellah Lakes has recorded losses for the past 5 years from 2021 to 2025.
For the year ended 31, July 2025, the firm recorded a loss after tax of N1.59 billion.
In May 2019, Ellah Lakes acquired Telluria Farms, an oil palm production company with 2400 hectares of farm land in Edo State.
This changed the corporate mission to the production of oil palm and its derivative products, as well as other cash crops.
The company also acquired 5,000 hectares of land in Ondo State (to be used for planting cassava, soybean and maize).
A subsidiary company- ELP Sunshine Limited was incorporated in which Ellah Lakes holds 80%, while the Ondo State Government through the Ondo State Investment Promotion Agency owns 20%.
The Ondo state Government has however indicated its intention to withdraw from the arrangement and instead lease the land (2,800 hectares) to Ellah Lakes.
In addition, the company acquired another 5,000 hectares in Enugu State in which it has a subsidiary- Adani Staple Crop Processing Zone Food Company Limited with 65% holding, the farm is being developed for soybeans and rice in partnership with the Enugu State Government.
The Enugu State Government has requested that its interest be increased to 40%.
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