Last Update 11 Nov 25
Ellah Lakes Plc Public Offer – Transformational Growth through Strategic Expansion
Pioneering Nigeria’s Integrated Agribusiness Future
Overview Founded in 1980, Ellah Lakes Plc stands as a leading Nigerian agribusiness enterprise, pioneering large-scale, sustainable agricultural development across the country. The company is strategically positioned in the cultivation and processing of oil palm, cassava, soybean, maize, rice, and livestock, all of which are central to Nigeria’s food security and industrial raw material supply chains. Through an integrated operating model that spans primary cultivation to agro-processing and export, Ellah Lakes is reshaping the country’s agribusiness landscape and unlocking significant value in one of the economy’s most critical growth sectors.
Operational Highlights
- 2,400Ha Oil Palm Plantation in Edo State
- 7,804Ha Mixed-Use Land Portfolio across Ondo and Ekiti States
- 5,000Ha Dedicated for Crop Farming
- 1,500 Livestock (Pig) Headcount as of FY2025
These assets form the cornerstone of a scalable, sustainable production base that supports the company’s vertically integrated value chain and export-driven growth strategy.
Strategic Growth Catalyst – Acquisition of ARPN
On October 3rd, 2025, Ellah Lakes Plc announced a landmark agreement to acquire Agro-Allied Resources & Processing Nigeria Limited (ARPN) from Tolaram Africa PTE Ltd and Valuestar Holdings PTE Ltd.
The acquisition represents a transformational scale-up for Ellah Lakes, reinforcing its position as a major player in Nigeria’s agribusiness sector.
Key Highlights of the Transaction:
- 22,176Ha of prime, high-value arable land (with 51% already cultivated)
- Positions Ellah Lakes among the top two oil palm producers by land bank in Nigeria
- Creates one of Southern Nigeria’s largest cultivated agricultural portfolios, enabling long-term sustainable yield growth
- Expands Ellah Lakes’ operational footprint and processing capacity within a defensive, high-growth sector
- Deepens strategic partnerships within Nigeria’s agro-industrial and food value chains
Strategic Impact: The ARPN acquisition accelerates Ellah Lakes’ expansion into large-scale commercial farming and agro-processing, establishing a robust foundation for long-term earnings growth, cash flow stability, and enhanced shareholder value.
Why Invest in the Public Offer
- Strong Revenue Growth Outlook: Driven by exposure to high-demand sectors such as oil palm, cassava, and livestock — key components of Nigeria’s food and industrial supply chains.
- Vertically Integrated Agro-Industrial Platform: Seamlessly connecting cultivation, processing, and export for enhanced efficiency and profitability.
- Experienced Management Team: Proven track record in executing strategic acquisitions, integrating multi-location operations, and delivering business turnarounds.
- Clear Strategic Roadmap: Well-defined path to sustained profitability, cash generation, and commencement of dividend payments.
- Transformational Scale: Post-acquisition, Ellah Lakes is positioned to capture substantial market share in Nigeria’s agribusiness sector — an area of structural underinvestment and high unmet demand.
Offer at a Glance
Item - Details
Issuer : Ellah Lakes Plc
Shares Offered: 18.8 billion Ordinary Shares of ₦0.50 each
Offer Price : ₦12.50 per share
Gross Proceeds: ₦235 billion
Offer Period; 10 November – 05 December 2025
Minimum Subscription - 500 shares and multiples of 100 thereafter
Use of Proceeds - Fund strategic acquisitions and boost operational capacity
Listing - Nigerian Exchange Limited (NGX)
Analyst Commentary
Ellah Lakes’ acquisition-driven expansion marks a turning point in Nigeria’s agribusiness sector, providing exposure to scalable, sustainable, and value-accretive assets. With strong management execution capability, integrated operations, and a growing land bank, the company is well-positioned to deliver long-term earnings growth, strengthen food security, and enhance shareholder returns.
Key Highlights:
- EGM Set for July 25: Seeking approval for public/private equity issuance and conversion of related-party loans to ordinary shares.
- Debt-to-Equity Strategy: Board proposes converting director/shareholder and CBN program loans to equity—aimed at deleveraging and strengthening the balance sheet.
- Revenue Surge: Q3 2025 revenue of ₦68.7m vs. ₦416k YoY—despite a ₦238.1m operating loss driven by administrative costs.
- Stock Up 122% YTD: Investor sentiment turns bullish amid turnaround expectations; share price at ₦7.64.
- Palm Oil Production by H1 2025: Expansion of the Edo plantation (2,400 ha) and future palm kernel oil production seen as catalysts.
- N250bn Raise Planned: To consolidate land, improve agri-infrastructure, and scale operations.
- Strategic Land Deals: Ondo State’s potential equity-for-land lease (5,000 ha) would expand asset base without upfront cost.
- Cash Position Thin: Liquidity risk persists—cash balance ₦15.9m, down from ₦243m.
Ellah Lakes Plc appears poised for a structural transformation as it prepares for an Extraordinary General Meeting (EGM) on July 25, 2025, seeking shareholder approval for a sweeping capital restructuring initiative. The proposal includes issuing new equity—either via public offer or private placement—and converting existing director and related-party loans into ordinary shares.
These moves mark a crucial milestone in the company’s ongoing turnaround journey, one anchored by its pivot into agribusiness following the 2019 acquisition of a 2,400-hectare oil palm plantation in Edo State. Now, with palm oil production slated to begin in H1 2025, the firm is gearing up for what could be a breakout year.
Q3 2025 results show a dramatic revenue jump to ₦68.7 million, from just ₦416,000 a year ago—signaling early traction. However, the operating loss of ₦238.1 million, largely due to overhead costs, suggests scale and efficiency have yet to catch up.
Despite the losses, investors have responded optimistically. The stock has gained 122% year-to-date, trading at ₦7.64, with analysts pointing to the EGM’s proposals as a vote of confidence in Ellah Lakes’ capital and operational blueprint.
A key part of the strategy is debt conversion—notably, the board plans to convert ₦658 million owed under the Central Bank of Nigeria’s Oil Palm Development Programme and other liabilities into equity. This could ease the company’s debt burden and improve solvency metrics significantly.
The ambition is bold: a ₦250 billion raise to finance land consolidation, agricultural infrastructure upgrades, and production acceleration. If realized, this would position Ellah Lakes among Nigeria’s top agri-businesses by scale.
Another game-changer is the planned integration of ELP Sunshine Ltd, with a novel proposal from the Ondo State Government to trade its 20% equity stake for a long-term lease on 5,000 hectares—effectively expanding Ellah’s land assets without cash expenditure.
Still, challenges loom. With cash reserves at just ₦15.9 million, down from ₦243 million at fiscal year start, liquidity remains a significant constraint. Execution risk is high, and successful capital deployment post-EGM will be critical.
Conclusion:
Ellah Lakes is undergoing a high-stakes transformation. While financial fragility persists, a successful EGM outcome could unlock massive upside—both operationally and in shareholder value.
The proposed equity issuance and debt conversion are strategic and timely. If managed with discipline, Ellah Lakes could emerge as a leading force in Nigeria’s agribusiness sector—turning what was once a speculative stock into a fundamentally grounded growth story.
How well do narratives help inform your perspective?
Disclaimer
The user Wane_Investment_House has a position in NGSE:ELLAHLAKES. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.