Dekeloil Public Limited Gains 100% Interest in Profitable Palm Oil Project (6016T)
09 January 2017 - 6:00PM
UK Regulatory
TIDMDKL
RNS Number : 6016T
Dekeloil Public Limited
09 January 2017
DekelOil Public Limited / Index: AIM / Epic: DKL / Sector: Food
Producers
9 January 2017
DekelOil Public Limited
('DekelOil' or the 'Company')
Gains 100% Interest in Profitable Palm Oil Project
DekelOil Public Limited is pleased to announce that it now holds
a 100% interest in the profitable and vertically integrated
Ayenouan palm oil project in Côte d'Ivoire (the 'Project'), which
includes one of West Africa's largest crude palm oil ('CPO') mills.
This follows the acquisition, by way of a share conversion, of the
remaining 14.25 per cent interest in CS DekelOil Siva Limited
('CSDS'), the Company's joint venture which owns the Project, from
DekelOil's partner, Biopalm Energy Limited ('Biopalm') ('the
Acquisition').
The Acquisition completes the process initiated in May 2016 when
a circular was sent to DekelOil's Shareholders regarding the
exercise of the First Option by the Company to acquire 30.5 per
cent of the shares in CSDS which Biopalm then held and the
subsequent acquisition in July 2016 of a further 4.25 per cent of
Biopalm's shares in CSDS.
Consideration for the Acquisition is being satisfied via the
issue of 35,455,111 ordinary shares of EUR0.0003367 (the 'New
Ordinary Shares') in the Company to Biopalm at 13.25p per share, a
premium of 19.2 per cent to the closing share price on 6 January
2017. This equates to a purchase price of the remaining 285 shares
in CSDS of EUR21,428.57 per share at a fixed GBP/EUR exchange rate
of 1.3, an 11.5 per cent premium to the prevailing GBP/EUR exchange
rate of c.1.17*. The premium achieved on both the conversion price
and the prevailing exchange rate results in shareholders of
DekelOil obtaining an additional 14.25 per cent in the Project via
the issue of only 12.52 per cent in new shares in DekelOil. The
Directors therefore believe that the Acquisition is value accretive
for existing shareholders.
Following the issue of the New Ordinary Shares, Biopalm will
hold approximately 12.51 per cent of the issued share capital in
DekelOil and has agreed to certain orderly market restrictions in
respect of its shareholding in DekelOil.
Lincoln Moore, Executive Director of DekelOil, commented,
"Today's acquisition has been secured on terms that are value
accretive for our existing shareholders. Equally as important
however, is that it gives DekelOil 100% ownership of our producing
and profitable palm oil project at Ayenouan. Our shareholders will
also enjoy 100% of the benefits of all new initiatives going
forward and I look forward to providing further updates on our
progress in due course."
Total Voting Rights
In addition to the 35,455,111 New Ordinary Shares, application
has been made to the London Stock Exchange for the admission of an
additional 138,007 New Ordinary Shares issued to certain advisers
in settlement of fees for services provided.
Application will be made for the New Ordinary Shares, which will
rank pari passu with the existing ordinary shares, to be admitted
to trading on AIM (the 'Admission'). It is expected that Admission
will become effective and dealings in the New Ordinary Shares will
commence on or around 12 January 2016.
Following the issue of the 35,593,118 New Ordinary Shares, the
Company's issued share capital will consist of 283,417,158 ordinary
shares of EUR0.0003367 each ('Ordinary Shares'). No Ordinary Shares
are held in treasury at the date of this announcement and therefore
following the Admission, the total number of voting rights will be
283,417,158.
The above total voting rights figure may be used by shareholders
as the denominator for the calculation by which they will determine
if they are required to notify their interest in, or a change to
their interest in, the Company.
*exchange rate as at 16:35 UTC on Friday 6(th) January 2017
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ('MAR). Upon the
publication of this announcement via a Regulatory Information
Service ("RIS"), this inside information is now considered to be in
the public domain.
**ENDS**
For further information please visit the Company's website
www.dekeloil.com or contact:
DekelOil Public Limited
Youval Rasin
Shai Kol
Lincoln Moore +44 (0) 207 236 1177
Cantor Fitzgerald Europe
(Nominated Adviser and Broker)
Andrew Craig
Richard Salmond +44 (0) 207 894 7000
Beaufort Securities Limited
(Broker)
Elliot Hance +44 (0) 207 382 8300
Optiva Securities Limited
(Broker)
Christian Dennis
Jeremy King +44 (0) 203 137 1903
St Brides Partners Ltd
(Investor Relations)
Elisabeth Cowell
Frank Buhagiar +44 (0) 207 236 1177
Notes:
DekelOil Public Limited is a low cost, profitable producer of
palm oil in West Africa, which it is focused on rapidly expanding.
It owns 100% of 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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