₦airaland Forum

nosa2:
The biggest short coming of communicating via text is that it is difficult to convey sarcasm.

For every transaction there is typically a buyer and a seller. The buyer thinks the seller is not seeing what he is seeing. The seller is thinking the buyer is stupid for buying.

With regards to Ellah I am a spectator. I would really love to see who is wrong in this movie. The buyers or the sellers. A company is raising almost $200m and the CEO is telling me how they will be feeding pigs with palm kernel cake. Make una continue!!! I just cant be involved in the saga.

handsomebolanle:
😂😂. I’ve listened to him many times. He says basically the same thing- I guess it’s keeping the story straight.

Anyways I’m waiting for 6-7naira so I can pick up my Public offer.
This will be my last comment on Ellah for the moment.

SonofElElyonRet:
What part didn't you comprehend?

HesInMe:
What's the point? Nobody ever asks him the fundamental question related to the proposed acquisition: How does Ellah intend to create value from an asset they buy at a premium?

HesInMe:
So tell us na: How does Ellah intend to create value from an asset they buy at a premium?

nosa2:
The biggest short coming of communicating via text is that it is difficult to convey sarcasm.

For every transaction there is typically a buyer and a seller. The buyer thinks the seller is not seeing what he is seeing. The seller is thinking the buyer is stupid for buying.

With regards to Ellah I am a spectator. I would really love to see who is wrong in this movie. The buyers or the sellers. A company is raising almost $200m and the CEO is telling me how they will be feeding pigs with palm kernel cake. Make una continue!!! I just cant be involved in the saga.

SonofElElyonRet:
Ok. Let's see what's gonna be in 5 - 10 years.. already dividends will commence next year..

ositadima1:
So if an asset is bought at a premium, you can’t create value from it? Where did you learn that?

But the bigger question is how you even arrived at your ‘premium’ claim. I want to check something, since the acquisition of ARPN is part of what that ₦235 billion covers.

ARPN reportedly has about 22,000 hectares (I need verification), with roughly 6,500 already planted with palm fruit, 60% of which is matured and fruiting.

Let’s even ignore all that and focus only on the land. Assume the land is bare, no palm trees, no cassava, no processing facilities. One hectare is about 15 plots in Nigeria. That’s roughly 330,000 plots. If one plot costs ₦500k, that alone gives you about ₦165 billion worth of land.

Piggery is also a huge business, high survival rate, cheap to maintain, and the meat is nutritious. Do some research on piggery in China; it’s actually one of their main sources of meat.

emmanuelewumi:
Did you buy Ellah Lakes public offer or do you have plans to buyer it before it closes next week.

I regret sell 16,000 units of my Presco share about 5 months ago to invest in FGN bond.

But I made sure I bought the last right valued at almost N23million, because I have confidence in the company.

emmanuelewumi:
When the interview started, Boason told him you are now bigger than how you were the last time we met. Meaning pepper don dey rest

vacanci:
are you balancing with Okomu oil as well or it is only Presco in that sector or just presco alone

Streetinvestor2:
This part got me laughing. Who told them the guy wants to really raise 250 billion. If u have watched that guy body language, u will see he doesn't have passion for that sector. He is just looking for 20 billion and above to japa from the stress of agric sector. He is a coperate world guy.This is why he has not been producing results since 2019 with such land bank.Even the pig business he is failing on it.Guys who go into it start getting serious multiplying numbers in 3 yrs.
My guy go done change that suit/tie,begin chop better food,funish that HQ with functional AC and change car..lol.That is why they refused to add RI in the fund raising. They don't have genuine and true prospects for the business .kpakus na big time scam alert

Streetinvestor2:
This part got me laughing. Who told them the guy wants to really raise 250 billion. If u have watched that guy body language, u will see he doesn't have passion for that sector. He is just looking for 20 billion and above to japa from the stress of agric sector. He is a coperate world guy.This is why he has not been producing results since 2019 with such land bank.Even the pig business he is failing on it.Guys who go into it start getting serious multiplying numbers in 3 yrs.
My guy go done change that suit/tie,begin chop better food,funish that HQ with functional AC and change car..lol.That is why they refused to add RI in the fund raising. They don't have genuine and true prospects for the business .kpakus na big time scam alert

emmanuelewumi:
Institutional investors include Pension Fund Managers, Mutual Fund Managers, Insurance companies, Corporate Trustees etc.

Stanbic IBTC Pension Managers has 50 million shares of Presco and they are the biggest pension fund manager in Nigeria.

Stanbic IBTC Asset Management has Presco shares and are also the biggest mutual fund manager in Nigeria.

I looked at the September 2025 facts sheets of United Capital Asset Management, Chapel Hill Denham, FBN Quest Asset Management, GT Fund Managers Stanbic IBTC Asset Management last week and they all have 20% and above of their funds invested in Agricultural stocks.

Below are the top 10 stocks in the portfolio of United Capital Asset Management.

The institutional investors took their rights and asked for additional shares

emmanuelewumi:
It is part of the marketing of the current public offer.

The interviewer did not ask him, how he hopes to make a revenue of N26 billion in 2026, how will he pay dividends in 2026 and how it is possible for Ellah Lakes to be bigger than Presco in the next 5 years.


I am always careful of companies managed by CEOs who are smooth talkers, too many lamba.

When the interview started, Boason told him you are now bigger than how you were the last time we met. Meaning pepper don dey rest

nosa2:
They will soon give him award as Nigeria's sexiest CEO.

emmanuelewumi:
Did you buy Ellah Lakes public offer or do you have plans to buyer it before it closes next week.

I regret sell 16,000 units of my Presco share about 5 months ago to invest in FGN bond.

But I made sure I bought the last right valued at almost N23million, because I have confidence in the company.

essentialone:
How come you know another person who is selfless on the platform, but do not know if you yourself are selfless on the platform. Or are you not. If you are not, why naa? E good like that?

mails4funshi:
Pa Emma: You got back the 16k units sold via the RI. Well calculated investment.

Learning activated.

mails4funshi:
Pa Emma: You got back the 16k units sold via the RI. Well calculated investment.

Learning activated.

brotherly:
You are still wrong.

At best the reverse is the case . Many genuinely help while a few monkey hunt.

nairavsdollars:
Wema is dragging price with Accessbank on NSE. No be juju be that?

HesInMe:
I like you. You think you're smart. Lol.

I did not say one cannot create value via acquisition. I just noted that it is an important but unanswered question in Ellah's specific case, which has three characteristics that don't augur well for success.

First, history is not on their side. The proposed acquisition is gargantuan relative to the size of Ellah's existing business. Even at well managed firms, large acquisitions typically fail. Ellah is run by a banker with no agric expertise.

Second, Ellah is paying a high price for its main target: ARPN's oil palm plantation, which it values at N155bn. Publicly traded Presco and Okomu offer better comps than land in the bush for estimating the true market value of the plantation, measured on a price per planted hectare basis (adjusted for some yield metric, like average age). I'm confident you can do the math yourself.

Finally, the combination does not enjoy any significant synergies. Ellah has no existing business of note to offer significant cost savings or revenue enhancements when combined with ARPN. It is such synergies that make value creation possible -- with prayer and pouring libations -- when you pay a premium for an asset.

Honestly, the better way to see this deal is as a liquidity event for ARPN's owners, not value creation for Ellah's.

jonnysessy:
I beg to disagree. Once you sold any stock, it is gone. If you are entering again it is different. Either you enter at a lower price or higher price. Meanwhile, the 16k earlier sold reduce his RI. His right ought to have been more were it not sold.