The Société d’Investissement pour l’Agriculture Tropicale nv. sa. (SIAT Group), in line with its business strategy of consolidation and expansion, is restructuring and merging its edible oil business in Ghana and Nigeria into one entity, Presco PLC.
This would make the Ghana Oil Palm Development Company (GOPDC), Presco PLC and Siat Nigeria Limited (SNL) to operate under Presco PLC.
A statement issued by the GOPDC in Accra yesterday said the move was to make Presco PLC the market leader in the edible oil business in sub-Saharan Africa.
It said the consolidation would further position Presco PLC to become the market leader in terms of sustainability, profitability and size in sub-Saharan Africa.
“The restructuring will, among other goals, support GOPDC with a bigger balance sheet that can drive business expansion in Ghana to support the group strategy to increase palm cultivation under 60,000ha at present to 100,000ha and expand the company’s customer base,” the statement said.
The statement said Presco, SNL and GOPDC remained Siat Group associate companies that would continue to benefit from the SIAT Group Technical and Management excellence.
“This strategic move is designed to deliver enhanced long-term value to GOPDC by providing a strong platform for growth that can help bridge the supply gap in the local market and economy in line with its strong commitment to growing its franchise further in Ghana,” the statement said.
It said the three entities – Presco, SNL and GOPDC – would continue to meet their obligations when they fell due so as not to affect their business operations.
The statement said the implementation of the consolidation strategy was contingent upon meeting all regulatory requirements in both Ghana and Nigeria.
“We are confident that this consolidation will significantly benefit all stakeholders involved, and we look forward to the continued success and growth of our business,” the statement said.
