The share price of Presco Plc went up by 9.99% on Tuesday (04/06/2024) following the company’s disclosure of its plans to acquire 100% equity stake in Ghanaian Oil Palm Development Company (GOPDC), a Ghanaianintegrated agro-industrial company specialised in the cultivation of oil palm, extraction of crude palm oil and palm kernel oil, production of specialty oils and fats, and distribution of refined oil products. The cost of the acquisition is $125 million.
The board of Presco will table the planned acquisition at the company’s annual general meeting scheduled for June 6, 2024 for shareholders approval. When approved by shareholders, Presco will immediately pay $64,961,2 while the balance will be paid later.
Directors of Presco in a disclosure to the Nigerian Exchange said the acquisition would create significant value for the shareholders and relevant stakeholders of the company because it would increase the market share and customer base of the company and lead to its currency diversification because GOPDC generates about 41% of its revenue from exports primarily in US dollar and Euro.The directors also said the acquisition would strengthen Presco’s competitive position, increase its market value and investor confidence.
The decision to proceed with the transaction will be made by the minority shareholders of Presco. To this end, the directors are imploring the minority shareholders to vote in favour of the acquisition.
