By Dipo Olowookere
A deal for the supply of about 5,000 metric tonnes of cassava has been signed by Ellah Lakes Plc, a company listed on the Nigerian Stock Exchange (NSE).
This development was confirmed by Ellah Lakes in a notice to the investing public on Monday.
Ellah Lakes Plc is a Nigerian agriculture business that specialises in oil palm plantations in Edo and Delta States and is diversifying across oil palm value chain.
In the disclosure today, the firm said the produce offtake agreement it had was with Pure Flours Limited (PFM), a subsidiary De United Foods Industries Limited, makers of the popular Indomie noodles.
The major ingredient for noodles is flour, which can also be made from cassava.
“Ellah Lakes Plc hereby announces today that, it has signed a produce offtake agreement with Pure Flours Limited (PFM), a subsidiary De United Foods Industries Limited, for the supply of approximately 5000 MT of cassava,” the notice said.
Business Post gathered that Pure Flour Limited has two major brands in the market; Pure Flour for bread and Pure Flour Semolina.
According to information sourced from Dufil Group, the parent company of De United Foods Industries, its bread flour is “milled with best quality wheat and high-level protein; ideal for a variety of recipes, because we believe eating well, should taste good too.”
For the Pure Flour semolina, it said it is “a coarse grind of high-protein wheat when added to your meal provides a complete healthy and nutritious diet.”
Recall that last month, Ellah Lakes, as part of its expansion plans, said it was looking to acquire the entire assets and liabilities of an oil palm processing company in Delta State, which it did not reveal its identity.
“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 had said in August 2020.
