How Ellah Lakes’ N235bn Public Offer, Expansion Signal Rising Investor Trust in Agribusiness

By Enam Obiosio

Ellah Lakes Plc, a leading player in Nigeria’s agribusiness sector, has made a decisive move to expand its operational footprint with the acquisition of Agro-Allied Resources & Processing Nigeria Ltd (ARPN) and the launch of a N235 billion public offer. For investor relations professionals, this dual announcement is more than a growth story – it is a case study in strategic market communication, capital raising, and stakeholder confidence management.

Acquisition as a signal of scale and market leadership

The full acquisition of ARPN adds roughly 11,783 hectares of cultivated land, including 6,280 hectares of oil palm and 2,093 hectares of cassava, alongside 10,393 hectares of undeveloped land for future expansion. About 60 per cent of the oil palm plantation is already productive, with another 30 per cent nearing maturity.

From an IR perspective, this acquisition provides immediate evidence of sustainable cash flow, mitigates production risk, and strengthens the company’s investment narrative. By combining land assets, crop diversification, and operational maturity, Ellah Lakes signals to investors – both retail and institutional – that it is not merely expanding but doing so in a manner designed to preserve and grow shareholder value.

Public offer as a strategic tool for market credibility

The N235 billion public offer is equally significant in the IR context. Public offerings do more than raise capital; they communicate confidence to the market. By inviting broad participation, Ellah Lakes demonstrates transparency, a disciplined governance framework, and readiness to meet reporting obligations – all critical for investor confidence.

IR teams will leverage this transaction to highlight the company’s risk management approach, operational strategy, and growth potential. By clearly articulating how proceeds will fund the acquisition, scale livestock operations, and develop undeveloped land, the firm reassures investors of tangible returns and disciplined capital allocation.

L-R: Paul Farrer, Deputy Managing Director of Ellah Lakes; Chuka Mordi, Chief Executive Officer of Ellah Lakes; Osaro Oyegun, Director of Ellah Lakes; Seun Onayiga, Co-Founder & Managing Director, ACQ Capital Managers, and Bimbo Oyeyiga, Head, Corporate Finance, Rand Merchant Bank, at a press conference in Lagos announcing Ellah Lakes’ intention to undertake a public offer.

Portfolio strategy that speaks directly to investors

CEO Chuka Mordi underscored the strategic advantage of cassava, with its shorter 12- to 18-month gestation period compared to oil palm’s three- to four-year cycle. For investors, this demonstrates balanced cash flow planning and operational prudence. Interim returns from cassava financing the development of oil palm and other assets exemplify how Ellah Lakes is structuring its portfolio to optimize both growth and liquidity – a narrative that IR teams can package effectively for analysts, fund managers, and capital market participants.

Furthermore, with less than 10 per cent of Nigeria’s 60 million-tonne cassava output processed into high-quality cassava flour (HQCF), the firm positions itself to exploit a largely untapped market, reinforcing its growth story and making it easier for IR professionals to quantify opportunity size for investors.

IR as the bridge between operations and market confidence

In transactions of this magnitude, IR is not merely a support function; it is central to translating operational moves into investor-understandable milestones. The Ellah Lakes team can use the acquisition and public offer to provide ongoing updates on production cycles, cash flow generation, and portfolio expansion, helping investors map operational metrics directly to valuation models.

Moreover, the transparency around land acquisition, crop productivity, and growth strategy aligns with global best practices in ESG reporting – a factor increasingly critical to both domestic and foreign capital inflows.

Growth anchored in credibility and clear communication

Ellah Lakes’ expansion through ARPN acquisition and its ambitious N235 billion public offer showcase more than corporate growth – they highlight how disciplined investor relations transforms operational achievements into market credibility. By combining strategic communication, transparent reporting, and evidence-based growth metrics, the firm positions itself not just as an agribusiness leader but as a market-ready investment destination.

For Nigerian agribusiness, where scale, diversification, and investor trust are often scarce, Ellah Lakes’ approach exemplifies how investor relations can turn strategic transactions into long-term capital confidence.