Presco shareholders approve $162.8 million rights issue to fund acquisitions, expansion, and balance sheet growth under Rasheed Sarumi’s leadership
Presco Plc, Nigeria’s largest fully integrated agro-industrial palm processor, chaired by Rasheed Sarumi, has secured shareholder approval to raise up to N250 billion ($162.8 million) through a Rights Issue. The resolution, passed at the company’s Annual General Meeting on Aug. 19, 2025, gives the board the authority to issue new shares, pursue acquisitions, and expand operations.
The planned capital raise, which still requires regulatory clearance, will fund Presco’s growth program. This includes direct investments or acquisitions in related businesses. Shareholders also gave the board flexibility to use debt financing or a mix of equity and debt to strengthen the company’s balance sheet.
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Dividends underline investor support
Alongside the fundraising plan, Presco shareholders approved dividend payments that highlight confidence in the company’s earnings. Investors backed a N26.30 ($0.02) per share dividend for the 2023 financial year and a N42 ($0.03) per share dividend for 2024.
Together, the payouts amount to N68.3 billion ($44.47 million). Shareholders also authorized directors to raise Presco’s share capital to accommodate the Rights Issue and allowed outstanding shareholder loans or trade payables to count toward subscription payments, opening the door for wider participation.
Performance under Sarumi
Operating from Edo State and listed on the Nigerian Exchange, Presco runs plantations, mills, crushing plants, refining units, a biogas plant, and packaging facilities. It remains West Africa’s largest fully integrated palm oil processor and a key player in Nigeria’s efforts to cut reliance on imports and improve food security.
Since taking over as chairman in May 2024, Sarumi has guided the company through a strong recovery. For the six months ended June 30, 2025, Presco reported revenue of N198.74 billion ($129.4 million), up from N88.02 billion a year earlier. Profit more than doubled to N88.72 billion ($57.8 million), supported by rising demand for palm oil and refined products.
Sarumi, founder of Saroafrica Ltd. and a member of the Presidential Economic Coordination Council, has emerged as an influential voice in Nigeria’s agribusiness sector. His leadership has been central to Presco’s push to expand both locally and regionally.
Expansion and governance questions
As part of its growth strategy, Presco last week announced a $46 million deal to acquire Saro Oil Palm Ltd., a subsidiary of Sarumi’s privately held Saro Africa International. The transaction is tied to a broader $171.6 million expansion plan, which also includes entry into Ghana.
The deal is expected to increase Presco’s production capacity and deepen its regional presence. At the same time, it has sparked debate over corporate governance standards in Nigeria’s agriculture sector, underscoring the balance companies must strike between aggressive growth and transparency to investors.
