Presco Plc, a Nigerian palm oil producer, is set to acquire Saro Oil Palm Limited, a company owned by its Chairman, Rasheed Sarumi, in a deal valued at $46 million. According to reports, the acquisition is part of Presco’s $171.6 million expansion plan, which includes the purchase of Ghana Oil Palm Development Company.
Sources close to the matter confirm that Sarumi will receive the $46 million payment as part of the deal. Notably, Sarumi became Presco’s chairman last year after his conglomerate, Saro Africa, acquired a majority stake in the company.
The deal has sparked interest in the agribusiness sector, with some analysts questioning the implications of the transaction on corporate governance. Presco’s expansion plan is expected to increase its plantation size and operating profit, with projected contributions of up to ₦85 billion ($55 million) in operating profit by 2029.
To fund the acquisition, Presco plans to raise ₦250 billion through a rights issue to existing shareholders. The deal’s outcome and potential impact on the company’s growth and stakeholders are being closely monitored by industry observers.
