Tantalizers Plc has signed a preliminary agreement to acquire one of Nigeria’s biggest indigenous fisheries operators.

This marks a significant step in the company’s expansion into the nation’s blue economy sector.

The company’s board recently concluded a Memorandum of Understanding with Karflex Fisheries Limited and Karflex Investment Limited.

The MoU is for the acquisition of their assets, which are expected to be merged into Tantalizers Fisheries Limited.

Assets covered by the proposed deal include 24 fish trawlers and shrimp vessels.

The deal also covers 13 cold storage facilities, as well as other key fisheries-related infrastructure.

Following the execution of the MoU, Tantalizers Fisheries Limited will begin extensive due diligence.

Its financial advisers, GTI Capital and United Capital, will join the process.

Due diligence will cover legal, operational, financial, technical, environmental, and commercial aspects of the target firms and their assets.

This will happen within an agreed period.

Chairman of Tantalizers Plc, Alhaji Adam Nuru, was represented by the company’s Director, Dr. Israel Ovirih, during the signing ceremony.

He described the agreement as part of the company’s broader strategy to strengthen its footprint in Nigeria’s seafood and maritime industries.

Tantalizers, through its subsidiary Tantalizers Fisheries Limited, intends to leverage opportunities in the country’s blue economy reforms.

Focus areas include industrial fishing, shrimp harvesting, seafood processing, cold-chain logistics, exports, and sustainable fisheries development.

“The Board of Tantalizers Plc is pleased with the signing of this MoU and looks forward to the successful completion of the transaction. This marks one of the many strategic mergers and acquisitions undertaken since the acquisition and restructuring of Tantalizers Plc into a Foodtainment Group.

Upon completion of this Karflex Companies acquisition, the plan is to integrate the assets and operations into Tantalizers Fisheries Limited, resulting in a wholly-owned fishing and trawling business positioned to compete effectively within the local and international seafood market”.

Nuru further stated that the planned acquisition supports the company’s long-term diversification agenda.

It also drives efforts to create sustainable value in sectors capable of boosting foreign exchange earnings.

The acquisition will reinforce Nigeria’s food security chain.

He reaffirmed the company’s commitment to sustainable growth, increased shareholder value, and its ambition to become a diversified leader across the food, entertainment, hospitality, and blue economy industries.

Chairman of Karflex Fisheries, Wilson Samuel, expressed optimism over the partnership.

He noted that Tantalizers’ institutional capacity and renewed vision inspired confidence in the future expansion of Karflex assets.

The company believes the transaction will maximise the commercial potential of the fisheries assets developed by Karflex over the years.

“We are delighted to enter into this MoU with Tantalizers Plc. We believe this transaction represents a significant opportunity to unlock the full commercial value of the assets built over the years by Karflex Fisheries.

We ultimately see Karflex Fisheries becoming a subsidiary of Tantalizers Plc and our shareholders are excited to seeing Tantalizers Plc successfully completing this acquisition in record time as scheduled,” Samuel said.

The proposed acquisition remains subject to successful due diligence, asset valuation, final negotiations, regulatory clearances, execution of definitive agreements, and other agreed conditions.

Under its “foodtainment” business model, Tantalizers Plc has been pursuing an aggressive expansion strategy.

The strategy aims at broadening its operations beyond quick-service restaurants into fisheries, entertainment, and technology sectors.

Following its recapitalisation and the emergence of new core investors, the company has intensified efforts to reposition its food business.

It is expanding into commercial fishing through plans to acquire at least 10 modern trawlers.

The company has also entered a partnership with US-based Heritage Fisheries.

The company’s chairman, Charlie Quinn, also serves as Chairman of Tantalizers Fisheries Nigeria and Quinn Fisheries USA.

Quinn Fisheries USA operates one of the largest fishing terminals in New Bedford.