Zichis Agro-Allied Industries Plc has begun the method of obtaining a 221-hectare oil palm plantation owned by way of Amandel Nigeria Restricted to deal with shortages of clean fruit bunches (FFB) and build up crude palm oil manufacturing.
The corporate disclosed this in a understand filed with the Nigerian Trade (NGX), signed by way of its Corporate Secretary, Solomon Ogie Itsede.
Consistent with the disclosure, the board licensed control’s plan to begin the purchase at a digital assembly hung on Friday, October 23, 2026.
The proposed acquisition is predicted to offer a extra dependable provide of clean fruit bunches, a key uncooked subject material utilized in crude palm oil (CPO) manufacturing, whilst the corporate’s newly cultivated oil palm timber mature.
Zichis seeks to deal with uncooked subject material shortages
Zichis lately has 61 acres of fruiting oil hands, which can be 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 corporate stated it was once increasing its personal cultivation capability however had persisted to stand demanding situations sourcing contemporary fruit bunches from native farmers.
Previous in 2026, Zichis bought 2,000 acres of land for brand new oil palm cultivation, with greater than 300 acres already cultivated.
Alternatively, the newly planted hands would require some other 4 to 5 years to succeed in most yield, making the proposed acquisition a possible supply of provide in the intervening time.
- “Those younger hands take some other 4-5 years to start out yielding maximally, and sourcing FFB from native farmers has remained a problem.
- “The Amandel acquisition offers Zichis a quicker and extra unswerving supply of fruit,” the corporate stated.
Plantation contains mature and younger hands
The proposed acquisition covers 221 hectares alongside In the past-Kona Elegbeke Highway, off the Owo/Ifon Categorical Highway, in Ose Native Govt House of Ondo State.
Consistent with the disclosure, the property incorporates 74 hectares of fruiting oil hands and 54 hectares of younger hands elderly lower than two years. The remainder 93 hectares have not begun to be cultivated.
Zichis stated securing further FFB provides would improve upper crude palm oil output and make allowance it to enlarge into palm kernel oil (PKO) extraction.
- “The Corporate expects this to raise earnings in its oil palm trade and give a boost to its go back on property and go back on fairness in a brief distance,” the disclosure mentioned.
The corporate has appointed Futureview Monetary Products and services Restricted as monetary adviser to steer the transaction procedure.
The proposed acquisition stays topic to due diligence, settlement on ultimate phrases and all required approvals.
Acquisition follows sturdy first-half income
The deliberate enlargement comes after Zichis reported a pointy increase in profitability for the first half of 2026, supported by way of earnings expansion throughout its agricultural and poultry trade strains.
- The corporate’s unaudited monetary statements for the six months ended June 30, 2026, confirmed benefit earlier than tax of N478.7 million, up 448.6% from the corresponding length of 2025.
- Benefit after tax additionally rose by way of 543.1% to N457 million.
One at a time, the corporate’s board reviewed and licensed its unaudited monetary statements for the 9 months ended September 30, 2026, on the October 23 assembly.
Zichis stated the nine-month effects could be launched to the general public on or earlier than October 30, 2026.