Zichis to acquire 221-hectare oil palm plantation from Amandel

Zichis Agro-Allied Industries Plc is in the process of acquiring a 221-hectare oil palm plantation from Amandel Nigeria Limited to address FFB shortages and boost crude palm oil production. This decision was approved by the company's board during a virtual meeting on October 23, 2026. The acquisition will provide a more reliable supply of FFB, which is a key raw material for crude palm oil production, as Zichis' own cultivated oil palms mature.

Zichis currently has 61 acres of fruiting oil palms, expected to yield 244 tonnes of FFB in 2026, translating to an estimated 49 tonnes of crude palm oil using an extraction rate of 20%. While Zichis expanded its cultivation capacity by acquiring 2,000 acres of land in 2026, the newly planted palms will take four to five years to reach their maximum yield.

Hence, the proposed acquisition from Amandel is viewed as a potential interim source of FFB supply. The estate is located along Ago-Kona Elegbeke Road in Ose Local Government Area of Ondo State and consists of 74 hectares of fruiting oil palms, 54 hectares of young palms aged less than two years, and 93 hectares yet to be cultivated.

Zichis has appointed Futureview Financial Services Limited as the financial advisor for the transaction. This proposed acquisition is still subject to due diligence, final agreement on terms, and all required approvals. The acquisition is expected to help Zichis increase its crude palm oil output and enable expansion into palm kernel oil extraction.

The company reported a significant profitability increase for the first half of 2026, driven by revenue growth across its agricultural and poultry business segments. The company's board also reviewed and approved its unaudited financial statements for the nine months ended September 30, 2026, with the results to be released publicly by October 30, 2026.