Dekeloil Public Limited Acquisition of Interest in Palm Oil Project (2390D)
05 July 2016 - 4:00PM
UK Regulatory
TIDMDKL
RNS Number : 2390D
Dekeloil Public Limited
05 July 2016
DekelOil Public Limited / Index: AIM / Epic: DKL / Sector: Food
Producers
5 July 2016
DekelOil Public Limited
('DekelOil' or the 'Company')
Completes Acquisition of Additional Interest in Profitable Palm
Oil Project
DekelOil Public Limited is pleased to announce that it now holds
a 85.75% interest in CS DekelOil Siva Limited ('the Project'),
which includes one of West Africa's largest crude palm oil ('CPO')
mills. This follows the completion of the recent acquisition of an
additional 34.75% interest in the Project from DekelOil's joint
venture partner, Biopalm Energy Limited (see the Company's
announcements of 24 May 2016 and 15 June 2016 for further
details).
As set out in the recent Circular to shareholders in June 2016,
the remaining 14.25% of shares in the Project are now subject to
the Second Option Agreement. Under the Second Option Agreement, the
pricing of which is fixed and the total outstanding represents
EUR6.1m (before broker commissions and transaction costs), the
Company has until 20 December 2016 to exercise the Second Option
Agreement. If, upon the expiry of the Second Option, there are
unexercised Second Option Shares, Biopalm Energy has the option to
convert such unexercised Second Option Shares in CSDS to shares in
the Company within ten business days of the expiry of the Second
Option in accordance with the terms of the Option Agreement. The
number of shares in the Company to be granted to Biopalm Energy
pursuant to such conversion shall be calculated by reference to the
higher of either the Company's average trading price for the 3
month period prior to the expiry of the Second Option; or the
Company's share price at the date of exercise of the First Option
and rounded off to the nearest whole number of shares. In addition,
in the event that Biopalm Energy receives shares in the Company in
accordance with such conversion, it has agreed to certain orderly
market restrictions.
Lincoln Moore, Executive Director of DekelOil, commented, "We
believe the timing of the increase in our interest in Ayenouan to
85.75% is excellent. 2016 is the second full year of operations at
our 70,000 tonnes per annum extraction mill where, thanks largely
to our logistics network gaining traction with local smallholders,
CPO production is already ahead of the run rate achieved in 2015
which saw 35,500 tonnes produced. In addition, 2016 will see our
kernel crushing plant make a first full year's contribution,
producing value add products, while higher margin fresh fruit
bunches grown from our own 1,900 hectares of mature plantations are
now being used as feedstock."
**ENDS**
For further information please visit the Company's website
www.dekeloil.com or contact:
DekelOil Public Limited
Youval Rasin
Shai Kol +44 (0) 207
Lincoln Moore 236 1177
Cantor Fitzgerald Europe
(Nominated Adviser and Broker)
Andrew Craig +44 (0) 207
Richard Salmond 894 7000
Beaufort Securities Limited
(Broker) +44 (0) 207
Elliot Hance 382 8300
Optiva Securities Limited
(Broker)
Christian Dennis +44 (0) 203
Jeremy King 137 1903
St Brides Partners Ltd
(Investor Relations)
Elisabeth Cowell +44 (0) 207
Frank Buhagiar 236 1177
Notes:
DekelOil Public Limited is a low cost producer of palm oil in
West Africa, which it is focused on rapidly expanding. To this end,
it has a 51% interest in one of the largest oil processing mills
based in Côte d'Ivoire, which has a capacity of 70,000 tons of CPO.
Feedstock for the Mill comes from several co-operatives and
thousands of smallholders, however it also has nearly 1,900
hectares of its own plantations. Furthermore, it has a world-class
nursery with a 1 million seedlings a year capacity.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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