Zichis Agro-Allied Industries Plc has begun the method of buying a 221-hectare oil palm plantation owned by Amandel Nigeria Limited to deal with shortages of contemporary fruit bunches (FFB) and enhance crude palm oil manufacturing.
The firm disclosed this in a discover filed with the Nigerian Exchange (NGX), signed by its Company Secretary, Solomon Ogie Itsede.
According to the disclosure, the board accepted administration’s plan to start the acquisition at a digital assembly held on Friday, October 23, 2026.
The proposed acquisition is predicted to present a extra dependable provide of contemporary fruit bunches, a key uncooked materials utilized in crude palm oil (CPO) manufacturing, whereas the corporate’s newly cultivated oil palm bushes mature.
Zichis seeks to deal with uncooked materials shortages
Zichis presently has 61 acres of fruiting oil palms, that are anticipated to yield roughly 244 tonnes of FFB in 2026. At a median oil extraction charge of 20%, the corporate estimates that the harvest will produce about 49 tonnes of crude palm oil.
The firm stated it was increasing its personal cultivation capability however had continued to face challenges sourcing contemporary fruit bunches from native farmers.
Earlier in 2026, Zichis acquired 2,000 acres of land for brand new oil palm cultivation, with greater than 300 acres already cultivated.
However, the newly planted palms would require one other 4 to 5 years to attain most yield, making the proposed acquisition a possible supply of provide within the interim.
- “These younger palms take one other 4-5 years to begin yielding maximally, and sourcing FFB from native farmers has remained a problem.
- “The Amandel acquisition gives Zichis a faster and more dependable source of fruit,” the corporate stated.
Plantation contains mature and younger palms
The proposed acquisition covers 221 hectares alongside Ago-Kona Elegbeke Road, off the Owo/Ifon Express Road, in Ose Local Government Area of Ondo State.
According to the disclosure, the property contains 74 hectares of fruiting oil palms and 54 hectares of younger palms aged lower than two years. The remaining 93 hectares have but to be cultivated.
Zichis stated securing further FFB provides would help greater crude palm oil output and permit it to develop into palm kernel oil (PKO) extraction.
- “The Company expects this to lift revenue in its oil palm business and improve its return on assets and return on equity in a short distance,” the disclosure said.
The firm has appointed Futureview Financial Services Limited as monetary adviser to lead the transaction course of.
The proposed acquisition stays topic to due diligence, settlement on closing phrases and all required approvals.
Acquisition follows robust first-half earnings
The deliberate enlargement comes after Zichis reported a pointy increase in profitability for the first half of 2026, supported by income progress throughout its agricultural and poultry enterprise traces.
- The firm’s unaudited monetary statements for the six months ended June 30, 2026, confirmed revenue earlier than tax of N478.7 million, up 448.6% from the corresponding interval of 2025.
- Profit after tax additionally rose by 543.1% to N457 million.
Separately, the corporate’s board reviewed and accepted its unaudited monetary statements for the 9 months ended September 30, 2026, on the October 23 assembly.
Zichis stated the nine-month outcomes can be launched to the general public on or earlier than October 30, 2026.
