Ellah Lakes Plc has listed 1.88 billion ordinary shares of 50 kobo each issued to shareholders of Telluria Limited as consideration for 100 per cent acquisition of Telluria.
Ellah Lakes, one of Nigeria’s foremost agriculture businesses with specialty in fish farming, acquired Telluria to diversify its product offerings in the agribusiness sector. Ellah Lakes was incorporated on July 2, 1980 and was listed on the NSE on January 14, 1993.
The new shares were listed on the Nigerian Stock Exchange (NSE), bringing the new shares at par with the old shares of Ellah Lakes. With the listing on Monday, the total issued and fully paid up shares of Ellah Lakes increased from 120 million ordinary shares of 50 kobo each to 2.0 billion ordinary shares of 50 kobo each.
Ellah Lakes had acquired 100 per cent equity stake in Telluria with effect from May 7. Having complied with the necessary regulatory requirements, the acquisition was approved by the NSE as well as Securities and Exchange Commission (SEC).
Ellah Lakes stated that the primary objective of the acquisition was to strengthen its balance sheet, restore customer confidence, provide access to new markets, improve operations and create organisational efficiencies that will drive profitability and increase shareholders’ value.
According to the company, the board of directors and management consider this business combination to be in its best interest as the transaction will help to revitalise management and create access to diversified expertise and financial strength.
The company added that the acquisition would also help to improve administrative and operational efficiencies as well as strengthen its market position by increasing access to new products and markets.
With the acquisition, Ellah Lakes appointed Mr. Chuka Mordi as its Managing Director with effect from June 12. Mordi took over from Mr. Frank Ellah, who remains on the board as a non-executive director. Prior to appointment, Mordi was a director in Telluria and the Managing Partner of CBO Investment Management.
Commenting on his appointment, Mordi said he was happy to lead Ellah Lakes into a new era of growth.
“I am very excited to be taking up the position of Ellah Lakes Managing Director. The combination of Ellah Lakes and Telluria establishes a platform with a significant existing land portfolio, access to finance and investments in the domestic production of oil palm and a variety of cash crops. I look forward to an exciting future as we put Ellah Lakes back on a path to growth,” Mordi said.
Mordi has an impressive track record across all segments of finance both in Nigeria and the United Kingdom. He has over two and a half decades of experience in private equity investing, investment banking, and investment research. He holds a Philosophy degree from King’s College, University of London.
Speaking during the listing of the additional shares, NSE Chief Executive Officer, Mr Oscar Onyema, commended the board and management of Ellah Lakes and other professional parties for success of the acquisition deal.
He said the listing marked the beginning of a new era for the company from the previous shut down of its operations due to militant activities and vandalism of its assets.
He noted that the new management team had successfully revived the company’s operations and turned around its listing status at the NSE.
“The Exchange recognises the role played by the board, management and other parties in the Telluria Limited acquisition transaction. We also commend ongoing efforts to restructure and diversify the company’s operations from fish farming to a more competitive business in oil palm cultivation and processing. We believe that this new business strategy will position the company as a major player in the agriculture sector,” Onyema said.
He said Ellah Lakes should consider leveraging the NSE platform to raise capital to fund its future business expansion.
He urged the company to continue providing the stock market with timely information about its strategic plans, operational developments and financial projections, pointing out that the market is driven by timely, relevant and accurate information.
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