Ellah Lakes’ major shareholders agree to sell down shares

Three major shareholders of Ellah Lakes Plc have each undertaken to sell down 25 percent of their shares held in the company towards the resolution of its free float deficiency on or before Mar. 15, 2021.

The fish farming company said on Thursday that the undertaking followed discussions with the Nigerian Stock Exchange on the lack of liquidity in the shares of Ellah Lakes “due to the company’s free float that currently stands at 14.55 percent with a value of N1,236,333,070.75.”

The NSE’s regulations require that all companies listed on the Exchange’s Main Board must have a minimum of 20 percent of their shares held by members of the public or a free float value of N20bn. 

Ellah Lakes said, “Following the completion of the acquisition of Telluria in 2019, a majority of the shares of Ellah Lakes were consolidated, and the free float was reduced to 13 percent (below the regulatory threshold of 20 percent).

“In a bid to rectify this situation, CBO Capital Partners, Blackman & Co, and Osaro Oyegun have given an undertaking, with the intent of bringing the company into compliance with the 20 percent free float requirements of the NSE.”