CBO Capital Partners (CBO) Limited, a major shareholder of Ellah Lakes Plc, has decided to transfer a portion of its equity stake to its shareholders and creditors in a move that will further dilute the ownership structure of Ellah Lakes.
Ellah Lakes made this known in a statement signed by its head of Administration, Modupe Ejikeme. The chief executive officer, Ellah Lakes, Mr. Chuka Mordi said that CBO Capital Partners, a major shareholder of Ellah Lakes, is transferring a portion of its’ Ellah Lakes shares to its’ shareholders and creditors in a cross deal.
He stated that this trade move is aimed at offsetting CBO’s outstanding obligations to CBO Shareholders, while simultaneously fulfilling Nigerian Exchange Limited’s (NGX) requirements on the free floating of Ellah Lakes shares.
“By undertaking this strategic move, CBO is demonstrating its commitment to financial responsibility and compliance with regulatory standards set forth by the NGX.
“The decision to transfer a portion of Ellah Lakes shares to its’ creditors not only help CBO manage its’ obligations effectively, but also enhances the liquidity and free float of Ellah Lakes shares in the market,” he explained.
Mordi noted that this cross deal signifies a proactive approach by CBO to strengthen its’ financial position and support the stability and growth of Ellah Lakes Plc, saying that “we believe that this trade move will have a positive impact on all stakeholders involved and contribute to the overall success of Ellah Lakes Plc.”
Ellah Lakes had signed many agreements in recent period for major projects that are expected to form the backbone of the company’s business diversification drive.
It had reached an agreement to build a 600-tons sugar refinery in collaboration with Montserrado Investment Limited. The sugar processing facility is expected to run on 100 per cent renewable power.
Ellah Lakes had earlier reached agreement with Ondo State on the development of a palm oil and cassava farm, covering about 5,000 hectares. Both partners would jointly develop and manage the farm for the cultivation of oil palm and cassava in Ondo state.
Ellah Lakes had in August 2020 entered into exclusive discussions to acquire the entire issued capital of an oil palm processing company with substantial assets in Delta State.
Ellah Lakes was incorporated on July 2, 1980 and was listed on the Nigerian Exchange (NGX) on January 14, 1993. Originally a fish-farming company, Ellah Lakes had recently embarked on a comprehensive restructuring and diversification of its businesses. In 2019, it acquired Telluria in order to diversify its product offerings in the agribusiness sector.
