Court of Appeal overturns ruling against Presco’s AGM, rights issue

The Court of Appeal in Benin has overturned a Federal High Court ruling that had affected Presco Plc’s 2025 Annual General Meeting (AGM), rights issue and other corporate actions, clearing the way for the company to proceed with the resolutions and capital-raising programme.

Presco disclosed this in a statement signed by its Company Secretary, Frederick Ichekwai, and released to shareholders and the investing public on Monday, August 24, 2026, following the appellate court’s judgment delivered on August 21, 2026.

Presco Plc is a fully integrated agro-industrial company involved in oil palm cultivation, processing, refining and the production and marketing of edible oils and speciality fats across West Africa.

What they are saying

The Court of Appeal, Benin Judicial Division, ruled in favour of Presco in Appeal No. CA/B/220/2025, resolving all three issues submitted by the company and setting aside in its entirety the Federal High Court’s December 11, 2025 ruling.

• Presco said the appellate judgment means that “every interlocutory Order made under the Ruling of 11 December 2025 has been discharged.”

The company added that its AGM held on August 19, 2025 and the resolutions passed at the meeting remain valid, while its rights issue and the allotments made under its Securities and Exchange Commission-approved capital-raising programme are unaffected.

• “By the said judgment, every interlocutory Order made under the Ruling of 11 December 2025 has been discharged,” the statement reads in part.
• “Accordingly, the Company’s AGM of 19 August 2025 and the resolutions passed thereat remain valid and subsisting; the rights issue and the allotments made pursuant to the Company’s SEC-approved capital-raising programme are unaffected; and the relevant regulators are to recognize and give effect to the Company’s corporate actions,” it added.

The judgment also means that the relevant regulators are to recognise and give effect to Presco’s corporate actions.

Back story

The legal dispute predates the latest Court of Appeal judgment. Presco had previously disclosed litigation arising from Suit No. FHC/B/CS/37/2024, with the company stating in its 2024 annual report that it had appealed an earlier Federal High Court ruling and filed a motion for stay of execution.

• The dispute later extended to Presco’s August 19, 2025 AGM, where shareholders approved several resolutions, including authorising the Board to raise up to N250 billion through a rights issue.
• Presco subsequently launched a N237 billion rights issue, offering 166.67 million shares at N1,420 each. The company said the proceeds would support the acquisition of Ghana Oil Palm Development Company (GOPDC) and Saro Oil Palm, working-capital requirements and expansion.
• However, a Federal High Court ruling delivered on December 11, 2025, intervened in the company’s corporate actions.

According to reporting on the Court of Appeal judgment, the lower court had set aside the 2025 AGM, restrained Presco from proceeding with the share issuance and directed regulators, including the SEC and CAC, not to recognise the affected corporate actions. Presco appealed the decision, leading to the August 21, 2026 appellate judgment that has now overturned those orders.

What you should know

The legal dispute unfolded as Presco continued to deliver strong financial results.

• For the half-year ended June 30, 2026, the company reported N122.2 billion in profit before tax, representing a 9.3% increase from N111.9 billion in H1 2025. Revenue remained broadly stable at N198.8 billion, while EBITDA stood at N123.1 billion, giving the company a 61.9% margin.
• The company also strengthened its balance sheet during the period, with total equity rising 13.8% to N503.6 billion and total liabilities falling 42.5% to N277.8 billion.
• Retained earnings increased 34% to N258.4 billion, while its current ratio stood at 345.6%. The Board also proposed an interim dividend of N10 per ordinary share.
• The H1 performance followed an even stronger 2025 financial year, when Presco reported a pre-tax profit of N177.98 billion, up 57.4% from N113.22 billion in 2024.

The latest court judgment therefore removes a major legal uncertainty surrounding Presco’s 2025 corporate actions at a time when the company is reporting strong profitability, a stronger balance sheet and continuing expansion plans.