Presco Plc seeks shareholder approval for strategic acquisition deals
These acquisitions are expected to increase Presco’s total plantation size by 37%, expanding its footprint from approximately 43,547 hectares to 59,760 hectares.
NIGERIA/GHANA – Nigerian-listed palm oil producer Presco Plc is set to make a bold expansion move across West Africa, seeking shareholder approval for two major acquisitions aimed at consolidating its position as a leading edible oil conglomerate in sub-Saharan Africa.
The company plans to acquire a 100% equity stake in Ghana Oil Palm Development Company (GOPDC) for US$124.9 million and Saro Oil Palm (SOP) Limited in Nigeria for US$46.7 million.
Both entities are currently owned by Société d’Investissement pour l’Agriculture Tropicale (Siat SA), which is also a major shareholder in Presco.
These acquisitions are expected to increase Presco’s total plantation size by 37%, expanding its footprint from approximately 43,547 hectares to 59,760 hectares.
To finance the deals and refinance existing debt, Presco will propose a ₦250 billion (US$162.75M) rights issue.
The capital will be used to settle acquisition costs, restructure liabilities, and create a financial buffer for future growth initiatives.
GOPDC, founded in 1995, operates two major estates in Ghana’s Eastern Region, Kwae and Okumaning, spanning 21,000 hectares.
The company manages the whole oil palm value chain, from cultivation to refining, and supports over 6,000 outgrower farmers. It produces more than 35,000 tonnes of palm and palm kernel oil annually, with storage capacity for 21,000 tonnes.
Saro Oil Palm, established in 2019, has rapidly expanded its plantation base in Edo State, Nigeria.
Through the Edo State Oil Palm Programme and acquisition of Bansley International Ltd, SOP now controls 22,500 hectares, with 5,000 hectares already planted and 8,000 targeted by year-end.
Fresh Fruit Bunch production is expected to begin in 2026, supported by two planned mills with a combined capacity of 90 tonnes per hour.
Presco has experienced strong financial momentum in recent years, with rapid growth in revenue and profits owing to increased global demand for palm oil and favorable market conditions.
The acquisitions of GOPDC and SOP fit into Presco’s strategy to consolidate key assets in the palm oil value chain and capitalise on economies of scale.
The move also aligns with broader efforts by Nigerian agribusiness companies to diversify revenue sources and reduce dependence on crude oil, leveraging agriculture as a pillar for sustainable economic development.
Presco’s board emphasised that the acquisitions will drive long-term value creation, operational efficiency, and market expansion.
If approved, the acquisitions will mark a transformative chapter for Presco, reinforcing its commitment to sustainable agribusiness and regional integration in the palm oil sector.
The move also signals growing investor confidence in West Africa’s agricultural value chains and the strategic role of palm oil in food security and industrial development.
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