Ellah Lakes to acquire firm co-owned by Tolaram

Ellah Lakes Plc, an integrated agro-industrial company, says it has signed an agreement to acquire Agro-Allied Resources & Processing Nigeria Limited (ARPN) from ARPN PTE Ltd, Singapore.

ARPN PTE is jointly owned by Tolaram Africa PTE Ltd and Valuestar Holdings PTE Ltd.

In a statement on Friday, Ellah Lakes said its shareholders approved the deal at the extraordinary general meeting (EGM) held on July 25.

Under the deal, Ellah Lakes will take over 11,783 hectares of cultivated land, including 6,280 hectares of oil palm plantations, 2,093 hectares of cassava plantations, and 10,393 hectares of uncultivated land.

The company said the plantation’s age profile positions it for sustained productivity, with 60 percent of oil palms over four years old and entering peak yield, 30 percent between two and four years, and 10 percent under two years.

“Following the completion of the Acquisition, Ellah Lakes will consolidate ARPN’s assets into its operations delivering immediate scale and financial benefits, while unlocking significant long-term potential for crop diversification and vertical integration,” the company said.

“The Acquisition aligns perfectly with Ellah Lakes’ vertically integrated business model, which spans primary cultivation, mid-stream processing and downstream market access.”

Chuka Mordi, managing director and chief executive officer (CEO) of Ellah Lakes, said the agreement marks a defining step in the company’s transformation journey.

“Signing the sale and purchase agreement with ARPN marks a defining step in Ellah Lakes’ transformation journey. This acquisition will more than double our production footprint, accelerate earnings growth, and position us as a national champion in agro-industrial production,” Mordi said.

“We are excited about the immediate and long-term value this transaction will deliver to our shareholders and to Nigeria’s broader food security objectives.”

Madhukar Khetan, managing director and CEO of ARPN, described the deal as a proud milestone for his company.

“In a remarkably short time, we have successfully planted 6,280 hectares of palm seedlings, a benchmark achievement in our industry. This success is dedicated to our employees, whose commitment, hard work, and perseverance made it possible,” Khetan said.

“The acquisition by Ellah Lakes highlights the strength of the platform we have created and its alignment with Nigeria’s food security objectives. With their expertise and vision, Ellah Lakes is well-positioned to take this foundation forward, scale it up, and reach even greater heights.”

Ellah Lakes also said the transaction is still subject to approval from the Federal Competition and Consumer Protection Commission (FCCPC).