Presco Nigeria To acquire Ghanaian Oil Palm for $125 million

By Peters Monday, Abuja

Presco Nigeria is set to acquire the Ghanaian Oil Palm Development Company (GOPDC) for $125 million. Presco will purchase a 100% equity stake in GOPDC by acquiring 70,580,000 ordinary shares at a price of $1.77 per share.

The acquisition will be carried out in two stages, with an initial deposit of $64.962 million and the remaining balance to be settled later. Presco believes that this deal will help diversify its currency exposure and expand its market share.

However, GOPDC, currently a subsidiary of Siat SA, is involved in the cultivation and extraction of palm oil, as well as the production of refined oil products. It operates in the Eastern Region of Ghana and generates a significant portion of its revenue from export sales.

The acquisition is expected to increase Presco’s plantation size by 19% and enhance its competitive position. Furthermore, it is anticipated that this transaction will boost Presco’s market value and provide easier access to capital in the future.