Nigerian agro-industrial giant, Presco Plc, has announced plans to acquire two major oil palm companies in a deal worth over $171 million as part of its regional expansion strategy.
In a statement to shareholders, Company Secretary, Frederick Ichekwai, said Presco will acquire 100 percent equity in Ghana Oil Palm Development Company (GOPDC) for $124.93 million and Saro Oil Palm (SOP) for $46.71 million.
According to him, the acquisitions will expand Presco’s footprint in West Africa’s agro-industrial sector, boost processing capacity, and strengthen its integrated palm oil value chain.
To fund the acquisitions and other strategic plans, the company’s board has proposed a ₦250 billion Rights Issue to existing shareholders.
Proceeds will be used to refinance existing debts, pay for the acquisitions, and create a financial buffer for further business growth.
Presco said the deals are expected to deliver operational synergies and help meet the rising demand for refined vegetable oils and related products in the region.
At its 2024 Annual General Meeting, shareholders approved the purchase of GOPDC, but the board is seeking ratification of that decision along with approval for the SOP acquisition due to ongoing litigation.
Presco currently operates oil palm plantations, a palm oil mill, a palm kernel crushing plant, and a vegetable oil refining facility in Nigeria.