Ellah Lakes Secures SEC Approval for ₦235 Billion Public Offer to Drive Tolaram’s ARPN Acquisition
Ellah Lakes Plc has received the green light from Nigeria’s Securities and Exchange Commission (SEC) to proceed with its ₦235 billion public offer, a landmark move that marks the next phase in its aggressive growth and expansion plan. The public offer, scheduled to open on November 10, will see the company issue 18 billion new shares to fund its acquisition of Agro-Allied Resources and Processing Nigeria Limited (ARPN), a subsidiary of Tolaram Group.
Speaking at a media briefing in Lagos, Managing Director Chuka Mordi described the offer as a “definitive statement of intent,” noting that the capital raise will strengthen Ellah Lakes’ position as a leading player in Nigeria’s agro-industrial space. He emphasized that the acquisition will fast-track the company’s vertical integration strategy and long-term sustainability. Deputy Managing Director Paul Farrer added that the company will install a 20-tonne-per-hour mill at the ARPN facility in Edo State, complementing its existing 6-tonne mill in Iguelaba.
Since Mordi’s leadership began in 2019, Ellah Lakes has undergone a remarkable transformation through strategic mergers, acquisitions, and capital raises. The turnaround started with the reverse acquisition of Telluria Limited, which brought vital oil palm assets into the company. Subsequent initiatives, including a ₦2.9 billion rights issue and a debt-to-equity conversion, have strengthened its balance sheet and positioned it for expansion into new agricultural frontiers.
The acquisition of ARPN is expected to significantly boost Ellah Lakes’ production and processing capacity. ARPN’s portfolio includes over 9,700 hectares of cultivated farmland—6,300 hectares of oil palm and 2,100 hectares of cassava—plus an additional 10,400 hectares for future development. The deal also includes a $25 million cassava processing plant with the capacity to handle 600 metric tons daily, which Farrer described as “world-class and nearly impossible to replicate at today’s costs.”
With Nigeria still importing about 40 percent of its palm oil needs, Ellah Lakes sees massive potential to close the supply gap and expand into value-added processing. “Our focus is not just on production but on creating a fully integrated agricultural ecosystem,” said Farrer. “The ARPN acquisition strengthens our position in palm oil and cassava, which remain our twin growth pillars.” The move, analysts believe, could position Ellah Lakes as one of West Africa’s dominant agro-industrial brands.
source: Business day