Ellah Lakes To Raise N235bn Through Equity Capital For Expansion

Ellah Lakes Plc has stated its intention to embark on N235 billion capital raise to boost Nigeria’s agro-industrial sector.

The chief executive officer of Ellah Lakes, Mr Chuka Mordi, stated this at a briefing held yesterday in Lagos.

At a press conference held yesterday in Lagos, the Company provided a comprehensive overview of the company’s robust strategic positioning, significant operational milestones, and ambitious plans for future growth and expansion in Nigeria’s agro-industrial sector.

The company highlighted Ellah Lakes’ distinctive, multi-dimensional positioning strategy across Nigeria’s agricultural landscape. With over 30,000 hectares of land assets spanning Enugu, Edo, Ekiti, and Ondo States, the company is geographically diversified, capturing a range of climatic advantages essential for its multi-crop operations.

Mordi stated, “This N235 billion capital raise is a definitive statement of intent. It is our commitment to our shareholders to deliver economies of scale, market resilience, and long-term value creation. We are confident that by deploying this capital effectively and executing our clear strategy, Ellah Lakes will solidify its position as the undisputed leading indigenous agro-industrial giant in West Africa.”

A key focus of the listing of the additional shares is the Company’s successful execution of its vertical integration strategy. The commissioning of its six-ton-per-hour Crude Palm Oil (CPO) mill is a strategic move designed to build a more robust and scalable revenue model less vulnerable to external supply chain disruptions. Furthermore, Ellah Lakes has bolstered its resilience through diversified revenue streams, combining long-term oil palm investments with medium-term cassava cultivation and more immediate revenue from its piggery operations.

The Company’s journey is deeply rooted in carefully sequenced capital raises and targeted mergers & acquisitions (M&A) that have progressively rebuilt and strengthened its agro-industrial platform. This includes the pivotal 2019 reverse acquisition by Telluria Limited, which integrated valuable oil palm assets and expertise, laying the foundation for vertical integration, and its recent announcement of its acquisition of 100 per cent shareholding of Agro-Allied Resources & Processing Nigeria Limited (ARPN).

The acquired assets included 11,783 hectares of cultivated land, 2093 hectares of cassava plantations, and an additional 10,393 hectares of uncultivated land.

Speaking on the ARPN acquisition, the deputy managing director of Ellah Lakes, Paul Farrer, said, “This acquisition marked a pivotal moment for Ellah Lakes as we strengthen our foothold in Nigeria’s agribusiness sector. Agro-Allied Resources & Processing Nigeria Limited (ARPN) brings a robust land bank and operational assets that align perfectly with our vision of vertical integration and sustainable growth.

“The ARPN acquisition will deliver immediate scale and financial benefits, achieving in months what would have taken years organically, while unlocking significant long-term potential for crop diversification & vertical integration. This will deliver value to all stakeholders as it delivers operational and financial scale immediately”

Prudent subsequent financing, such as the 2023 N2.9 billion rights issue and the late 2024 debt-to-equity conversion, has strengthened the balance sheet and provided the necessary liquidity to secure the 30,000-plus hectares and commission the CPO mill.