Presco Plc has said it will be seeking shareholders’ approval to acquire a 100 per cent equity stake in Ghana Oil Palm Development Company Limited (GOPDC) for $124.927 million.
Presco’s company secretary, Frederick Ichekwai, in a filing with the Nigerian Exchange (NGX), said it would require shareholder approval at the Annual General Meeting (AGM) scheduled for August 19, 2025.
Presco stated that, “in seeking avenues to consolidate its position and pursue opportunistic inorganic growth to achieve its vision to become the most profitable, sustainable and fully integrated edible oils group in the broader Sub-Saharan Africa region, the Board of Directors and management team of Presco have focused on identifying the right strategies to drive sustained long-term growth and profitability of the company.”
According to the company, “in line with this objective, a detailed review of the strategic opportunities available to the Company was explored and the Board reached a decision to acquire 100 per cent equity stake in GOPDC for $124.927 million and proposes to acquire Saro Oil Palm (SOP) Limited for a consideration of $46.711 million.”
The release stated that “the company will propose a N250 billion right issue to support the execution of its strategic initiatives and ensure a strong financial foundation.
“The proceeds from the rights issue will be deployed towards the refinancing of existing debt obligations, settlement of the outstanding consideration for the 100 per cent acquisition of GOPDC, settlement of the consideration for the proposed acquisition of Saro Oil Palm (SOP) Limited and creation of a financial buffer to support business expansion.”
Presco explained that the transactions would create significant value for shareholders and relevant company stakeholders, saying, “it will position Presco as a large African conglomerate with an expanded customer base and increased market share within Africa. Presco’s plantation size is expected to increase by 37 per cent from c.43,547 hectares to c.59,760 hectares, further solidifying its position as a leading oil palm producer in Africa.”
It added that the transactions would strengthen Presco’s competitive position and drive productivity through cost savings from streamlining its processes, optimising resource utilisation, and positioning more effectively to meet market demands as a consolidated oil palm business.
It further said the acquisition and proposed acquisition were expected to increase the market value of the larger entity listed on the Nigerian Exchange Limited (NGX) after the Acquisitions.
