Presco Plc to Acquire GOPDC and SOP in $171.64 Million Deal
Presco Plc, a listed Nigerian business, is seeking shareholder approval to acquire a 100% equity stake in Ghana Oil Palm Development Company Limited (GOPDC) for $124.93 million and Saro Oil Palm Limited (SOP) for $46.71 million.
The acquisition will significantly expand Presco’s operations, increasing its plantation size by 37% from approximately 43,547 hectares to 59,760 hectares. This move will solidify Presco’s position as a leading oil palm producer in Africa. GOPDC, a Ghanaian agro-industrial company, operates two main estates in Ghana’s Eastern Region, spanning around 21,000 hectares of oil palm plantations. SOP, on the other hand, is an agro-industrial company with a 10,000-hectare plantation in Edo State, Nigeria, and plans to expand to 22,500 hectares.
The acquisition will enable Presco to diversify its revenue streams, achieve economies of scale, and strengthen its competitive position. GOPDC generates about 41% of its revenue from export sales, which will contribute to Presco’s revenue diversification.
To finance the acquisition, Presco plans to raise up to ₦250 billion through a Rights Issue to existing shareholders. The proceeds will be used to settle outstanding consideration for the acquisitions, refinance debt, and support business expansion. This strategic move is expected to unlock significant long-term growth for Presco, deliver substantial value to shareholders, and improve access to capital through secondary stock offerings and bond issuances.
The acquisition will also position Presco as a larger African conglomerate with an expanded customer base and increased market share within Africa. With this move, Presco is poised to drive sustained long-term growth and profitability, solidifying its position in the oil palm industry. #Presco Plc to Acquire GOPDC and SOP in $171.64 Million Deal#
