Ellah Lakes is set to develop 5000 Hectares of land for the cultivation of Oil Palm and Cassava in in Ondo State, Nigeria. Ellah Lakes will establish the business venture with the Ondo State Government three months after announcing plan to acquire an oil palm processing company located in Delta State.
In a statement seen by AllNews, Ellah Lakes said the partnership is significant to the company's landbank - which is several land owned by Ellah Lakes for palm oil cultivation. According to the Chief Executive Officer of Ellah Lakes, Chuka Mordi, the Ondo State land is in line with the company's strategic objective.
The company is adding the new agreement to its growth plan which includes Edo State and Delta State, "Ellah Lakes Plc is happy to announce that it has executedan agreement with Ondo State Government for the joint development and management of 5000 Hectares of land,for the cultivation of Oil Palm & Cassavain Ondo State, Nigeria."
While addressing the partnership with Ondo State, Mordi said, "This is a significant landmark for the Company in the development of our landbank, & we are very excited to be working with ODSG. I am delighted that we are fulfilling our strategic objective of progressively expanding our land bank & diversifying our portfolio and production base.
"I am also glad to say that the intercropping programme in Edo State is progressing steadily & we have achieved our first milestone of 100 Hectares of Cassava with the participation of personnel of the Agricultural Development Program (ADP), in Edo State," Mordi.
Special Adviser on Development and Investment to the Ondo State Governor/ Chief Executive Officer of Ondo State Development and Investment Promotion Agency (ONDIPA), Akinboye Oyewumi said: “We are pleased with this collaboration with Ellah Lakes Plc., and we look forward to a mutually beneficial, valuable and fruitful venture."
Palm oil company, Ellah Lakes plans to acquire an oil palm processing company located in Delta State, a year after it sold its major stake to acquire Telluria Limited. Ellah Lakes said the discussion had begun with the unnamed company.
According to a statement obtained by AllNews, Ellah Lakes said it has already entered into an agreement with an oil processing firm, but the deal hasn't been finalised, "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% 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 signed an agreement with Pure Flours Limited, involving cassava delivery from the company. The deal between Ellah Lakes and Pure Flours Limited is a Produce Offtake Agreement which will see Ellah Lakes take delivery of 5000 Metric Tonnes of Cassava from the subsidiary of DeUnited Foods Industries Limited, AllNews gathered from a statement signed by Ellah Lakes' company secretary, Kenechi Ezezika.
In the statement, Ellah Lakes stated that, "it has signed a Produce Offtake Agreement with Pure Flours Limited (PFM), a subsidiary DeUnited Foods Industries Limited, for the supplyof approximately 5000 MT (Five Thousand Metric Tonnes) of Cassava," the statement dated September 14, 2020, reads.