Nigeria’s Presco to acquire Saro Oil Palm and Ghana’s in USD 171.64 million expansion

Nigeria’s agro-industrial giant, Presco Plc, is launching a bold expansion drive across West Africa, announcing plans to acquire two oil palm companies for a combined total of USD 171.64 million.

In a notice to shareholders, the company said it has agreed to acquire 100% equity in Ghana Oil Palm Development Company (GOPDC) for USD 124,926,600, alongside a proposed purchase of Saro Oil Palm (SOP) for USD 46,710,526, delivering a consolidated price tag of USD 171.64 million.

“In line with this objective, a detailed review of the strategic opportunities available to the Company was explored and the Board reached a decision to acquire 100% equity stake in GOPDC for USD124,926,600 … and proposes to acquire SOP for a consideration of USD46,710,526,” the notice reads.

To underwrite the acquisitions, Presco is proposing a ₦ 250 billion rights issue aimed at covering the acquisition costs, refinancing existing debt, and providing a financial buffer for future expansion.

“To support the execution of the Company’s strategic initiatives and ensure a strong financial foundation, the Board has proposed raising up to N250,000,000,000 through a Rights Issue … The proceeds … will be deployed towards the refinancing of existing debt obligations, settlement of the outstanding consideration for the 100% acquisition of GOPDC, settlement of the consideration for the Proposed Acquisition of SOP and creation of a financial buffer to support business expansion.”

Although shareholders approved the GOPDC acquisition at the 2024 AGM, ongoing litigation prompted the board to resubmit the resolution along with the SOP acquisition for ratification. “We therefore respectfully invite shareholders to ratify the Acquisition of GOPDC and consider for approval the Proposed Acquisition of SOP,” the notice added.

Presco emphasised that the twin acquisitions will generate “operational synergies”, increase processing capacity, and strengthen its integrated palm oil value chain to address rising regional demand.

Additional analysis reveals that the combined purchases will boost Presco’s land holdings by around 37%, from 43,547 hectares to 59,760 hectares, broadening its status as one of Africa’s largest oil palm producers.

Further, GOPDC brings valuable currency diversification, with about 41% of its revenue in US dollars and euros, helping to hedge against domestic exchange rate fluctuations.

The proposed acquisitions and rights issue will be presented for shareholder approval at the company’s AGM scheduled for August 19, 2025, at the Jewel Aeida Event Centre, Lekki, Lagos.