Presco Plc’s board is asking shareholders to approve the purchase of a 100% equity stake in Ghana Oil Palm Development Company Limited (GOPDC) for USD 124,926,600.
The proposal will be considered at the company’s Annual General Meeting on August 19, 2025, according to a notice filed with the Nigerian Exchange.
The board also plans to buy Saro Oil Palm Limited (SOP) for USD 46,710,526, part of its strategy to become the most profitable and sustainable edible oil group in sub-Saharan Africa.
While shareholders had approved both the business expansion and GOPDC acquisition at the 2024 AGM, legal disputes delayed the deal, leading the board to resubmit it for ratification, according to Nairametrics.
In its address to shareholders, the board said: “We respectfully invite shareholders to ratify the acquisition of GOPDC and to consider approval of the proposal to acquire SOP.”
GOPDC, established in December 1995, is a Ghanaian agro-industrial company managing the entire oil palm value chain, from cultivation to refining and product distribution.
Fully owned by Société d’Investissement pour l’Agriculture Tropicale (Siat SA), a major Presco shareholder, GOPDC operates two estates in Ghana’s Eastern Region, Kwae and Okumaning, covering about 21,000 hectares.
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The company has developed 13,000 hectares for 6,000 outgrower farmers and operates mills, a refinery, and a pellet plant.
It produces over 35,000 tonnes of palm and palm kernel oil annually, with storage capacity for 21,000 tonnes.
At peak harvest, GOPDC employs around 30,000 workers and supports more than 50,000 people through direct and indirect income.
Presco, which began packaging “King’s” olein oil in 2012, views the acquisitions of GOPDC and SOP as major steps in its expansion.
SOP, founded in Nigeria in July 2019 and fully owned by Siat SA, produces palm and palm kernel oil, specialty oils and fats, and distributes refined products.
It began developing a 10,000-hectare plantation in Edo State in 2020, later expanding to 22,500 hectares through the acquisition of Bansley International Ltd under the Edo State Oil Palm Programme.
By January 2025, SOP had planted 5,000 hectares and aims to reach 8,000 hectares by the end of the year.
Fresh Fruit Bunch production is expected to begin in 2026, targeting about 28,000 tonnes annually, supported by two planned palm oil mills with capacities of 60 and 30 tonnes per hour.
Acquiring SOP would boost Presco’s plantation size from roughly 43,547 hectares to 59,760 hectares by adding more than 14,000 hectares of prime land, an expansion that would normally take three to five years, significantly strengthening the company’s long-term growth and value prospects.
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Image Credit: Nairametrics
