NIGERIA – Ellah Lakes Plc, a fishing company in Nigeria, has acquired full has acquired 100 percent equity stake in Telluria Limited, one of the leading oil Palm and cassava producers in the country, at an undisclosed amount.

However, as a consideration for the acquisition of the entire stake of Telluria Limited by Ellah Lakes, the company has listed 1.88 billion ordinary shares at the Nigerian Stock Exchange of 50 Kobo each issued to the shareholders of Telluria Limited.

Ellah Lakes Plc, in a statement to Nigerian Stock Exchange, said that the acquisition made in furtherance of the diversification of its business.

The company said that the acquisition will also enable it to strengthen the balance sheet, improve operations and create organizational efficiencies that will drive profitability.

“Having complied with all the necessary regulatory requirements, the acquisition was approved by the Nigerian Stock Exchange and by the Securities and Exchange Commission.

“The primary objective of the acquisition is to strengthen Company’s balance sheet, restore customer confidence, provide access to new markets, improve operations and create organizational efficiencies that will drive profitability and increase shareholders’ value,” the company said.

The firm said that the transaction would also improve administrative and operational efficiencies of the company as well as strengthen the company’s market position by aiding access to new products and markets.

“The Board of Directors and Management of Ellah Lakes consider this business combination to be in the best interest of the Company and expect the transaction to; revitalize management; create access to diversified expertise and financial strength,” it added.

The development also comes at a time when the company has appointed Chuka Mordi as its new Chief Executive Officer.

Mordi, who replaced Frank Ellah, was previously serving as a director at Tulleria Limited and is said to have joined Ellah Lakes Plc as part of the acquisition agreement, reports Naira Metrics.

“We are pleased to be embarking on this new phase in the journey of Ellah Lakes Plc. With the business combination of the assets of Telluria, Ellah Lakes is in a great position to deliver value to all shareholders,” Mordi said.

The management of the company also recently confirmed that it would soon complete its restructuring exercise after it settling a US$1.64 million (N589.5m) debt owed to Ellah Sons & Company Limited.

“The result of this is that the lender has irrevocably and unconditionally released Ellah Lakes, its subsidiaries and all other third parties from all obligations, and this is completion of the first step in restructuring the balance sheet of Ellah Lakes,” the company said.