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Agro-Industrial firm Ellah Lakes, who is tapping the equity market to raise capital for the acquisition of a strategic asset and the expansion of processing facilities, is sanguine that its revenue will hit a billion naira, it will turn a profit and possibly pay a dividend next year.
The company has gotten approval from shareholders to raise up to N235 billion through various equity.
The proceeds of the issue will be used to fund the acquisition of Agro-Allied Resources & Processing Nigeria Limited (ARPN), owned by Singapore-based Tolaram Group and Valuestar Holdings PTE, a transaction that will be completed in December.
The acquisition will hand the ownership of 11,783 hectares of cultivated land, 2,093 hectares of cassava plantations as well as 10,393 hectares of farmland yet to be cultivated to Ellah Lakes assets.
“I am optimistic that this new asset for which we are raising capital will maximise shareholders’ wealth. We are going to transform the businesses with this acquisition,” said Chuka Mordi, Chief Executive Officer (CEO) of Ellah Lakes.
“By the end of next year, we are going to be a multi-billion naira business. The company is going to turn a profit, and possibly pay a dividend,” said Mordi.
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.
Ellah Lakes is listed on the NGX and has a market capitalisation of N43.7 billion.
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