Three major Ellah Lakes stakeholders to sell off shares amid non-compliance with NSE rule

Three substantial stakeholders in Ellah Lakes are planning to sell part of their shares in the oil palm company as Ellah Lakes nears deadline of non-compliance of Nigerian Stock Exchange (NSE) rule.

Ellah Lakes is a listed company on the Nigerian capital market main board. On the main board category, companies are expected to have 20 percent of their shares owned by the public or have 20 percent of their shares free float (available for public purchase).

But since the company merged with Telluria Limited, it had struggled to attain the 20 percent height, as the merger led to the consolidation of Ellah Lakes shares, dragging it down to 13 percent, a statement to investors disclosed.

The number has, however, climbed to 14.55 percent, but Ellah Lakes is struggling to free up shares to meet the listing requirements since the merger occured in June 2019. The deadline to meet the NSE requirements is March 15, 2021.

READ ALSO: CBO Capital, Blackman acquire stakes in Ellah Lakes

Ripples Nigeria gathered that the struggle to end it’s free float deficiency seem to be over, as CBO Capital Partners, Blackman & Co, Osaro Oyegun have pledged to sell part of their shares, a total of 25 percent, to enable Ellah Lakes complete the 20 percent free float requirement.

The 20 percent free float will increase Ellah Lakes outstanding share value to N20 billion from the current N1.23 billion. As of July 2020, CBO Capital and Blackman & Co. account for 28.20 percent and 16.92 percent of stake respectively in Ellah Lakes, while Oyegun has 4.7 percent.

But note that amid the struggle to meet up with NSE’s free float listing requirement, CBO Capital and Blackman & Co. had purchased more shares earlier this month – so if they are going to sell-off, it will be the recently purchased shares, having little impact on their previously held stakes.

Ripples Nigeria reported in February 4, that CBO Capital purchased a total of shares worth N112,000 while Blackman & Co’s purchased share value was pegged at N68,200.

While commenting on the decision of the three shareholders to sell-off part of their holdings in Ellah Lakes, the company Chief Executive Officer, Chuka Mordi, factored it to meeting the deadline and raising funds.

“We are working towards compliance, and we fully expect that we can achieve this by the deadline of 15th March 2021, so as to galvanize and encourage liquidity in the shares of Ellah lakes Plc.” Mordi said

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