Ellah Lakes to Buy Oil Palm Processing Firm in Delta

By Dipo Olowookere

As part of its expansion plans, Ellah Lakes Plc is looking to acquire the entire assets and liabilities of an oil palm processing company in Delta State.

The management of Ellah Lakes disclosed this information to the investing public on Thursday via the Nigerian Stock Exchange (NSE), where the company trades its stocks.

Business Post reports that Ellah Lakes, which primarily deals in the fishing business, has not been having it good lately.

In the third quarter of its present financial year ended April 30, 2020, the company generated zero revenue.

This was despite acquiring 100 per cent stake in Telluria Limited in mid-2019 and appointing a director in the firm it acquired, Mr Chuka Mordi, as its new managing director, all in an effort to push the organisation back to profitability.

But determined to make things work, the board and management of Ellah Lakes have entered into exclusive talks with an unnamed oil palm firm, which has “substantial assets in Delta State,” for the purchase of its entire stake.

“Ellah Lakes Plc announces today that it has entered into exclusive discussions with a counterparty regarding a potential transaction between the two parties.

“The potential transaction relates to the purchase of 100 per cent of the shares of an oil palm processing company with substantial assets in Delta State.

“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.

“Accordingly, shareholders are advised to exercise caution when dealing in the securities of Ellah Lakes Plc until a full announcement is made,” the company said in a disclosure.

As at the time of filing this report, shares of Ellah Lakes, a company established in 1980, were trading at the local stock exchange at N4.25 each with no trading activity recorded since June 26, 2020, when only 990 units of the stocks were traded on that day.