Palm oil company, Ellah Lakes, has announced 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 the 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."
As Ellah Lakes enters into the agreement with the oil processing company, shareholders or investors need to be cautious while trading Ellah Lakes shares, "shareholders are advised to exercise caution when dealing in the securities of Ellah Lakes Plc until a full announcement is made."
The deal follows that of Telluria Limited which saw the company being bought with shares as Ellah Lakes couldn't afford to pay to acquire Telluria. The deal, however, led to changes in the management of Ellah Lakes, as Telluria Limited became a majority stakeholder.
“They (Ellah Lakes) couldn’t afford to pay us in cash, so they paid in equity. The equity payout meant we took a majority position in the firm that was acquiring." Ellah Lakes' Chief Executive Officer, Chuka Mordi, told Nairametrics.