Ellah Lakes Plc has reacted to the speculation that it plans to change its name four months after it acquired 100% equity stake in Telluria Limited in order to effect the change in the management and diversification of the company’s business.
In June, Ellah Lakes announced to the investing public that it had acquired Telluria Limited. The acquisition, which took effect a month before the announcement, led to some changes which also saw the replacement of Frank Ellah as the Chief Executive Officer.
Frank Ellah was replaced by Chuka Mordi who was the Director of Telluria during the acquisition process. Nairametrics had in June 2019 reported that the change in leadership was part of the acquisition agreement.
While reacting to the claim about the change of name, a top executive, who is familiar with the proceedings of Ellah Lakes, denied the claim, informing Nairametrics that such decision hadn’t been made.
Nairametrics learnt that the name isn’t changing as speculated as Ellah Lakes remains the brand name of the company.
Why the speculation? Ellah Lakes’ diversification of its business from fish farming to oil palm had led to the speculation. The change of business operation is part of the company’s plan to access new markets, improve operation, drive profitability and increase shareholders’ value.
Ellah Lakes was established as a fish farming business but the consolidation with Telluria Limited ushered in a new direction as the company aims for an aggressive growth plan.
Also, Telluria Limited’s stake in Ellah Lakes backed the speculation of the name change, as it was believed that Telluria would want its identity to reflect in the brand’s name since it has a majority position in Ellah Lake.
Note: Ellah Lakes has been trading at N4.26 kobo on the Nigerian Stock Exchange (NSE) for more than two months.