Business
Acquisition of controlling stake in cashew project
Acquisition of controlling stake in cashew project.
About this update from Dekel Agri-vision Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 0878E\n Dekel Agri-Vision PLC\n 03 November 2020\n \n \n \n \n \n \n \n Dekel Agri-Vision Plc / Index: AIM / Epic: DKL / Sector: Food Producers\n \n \n \n \n \n Dekel Agri-Vision Plc ('Dekel' or the 'Company')\n \n \n Agreement to acquire controlling interest in large scale cashew project \n \n \n \n \n \n Highlights\n \n \n · \n Acquisition of additional 14.2% interest in the large scale raw cashew nut processing project at Tiebissou, Côte d'Ivoire\n \n \n · \n Increases Dekel's ultimate ownership interest in the Cashew Project to 52%\n \n \n · \n The Board believes the transaction represents excellent value for Dekel shareholders as the cashew plant approaches completion in Q2 2021 \n \n \n \n \n \n Dekel Agri-Vision Plc, the West African focused agriculture company, announces that it has agreed to acquire an additional 14.2% interest in the large scale raw cashew nut ('RCN') processing project at Tiebissou, Côte d'Ivoire (the 'Cashew Project'), which together with issuing the shares to Concordia Corporation Ltd ('Concordia') pursuant to the May 2019 announcement will increase the Company's interest in the Project to a controlling stake of 52% ('Transaction'). In summary, Concordia has agreed to transfer a beneficial interest in 14.2% of the Project to Dekel in consideration for 28,551,800 Ordinary shares ('Consideration Shares').\n \n \n \n \n \n The Transaction will be subject to the terms of an exchange agreement entered into by the Company and Concordia. Under the terms of the Agreement, Concordia will exchange a 14.2% beneficial interest in Pearlside Holdings Ltd ('Pearlside'), the wholly owned parent of Capro CI SA, the entity developing the Project, for 6.3% of Dekel (28,551,800 shares) (the 'Consideration Shares'). The Consideration Shares will be subject to a 12 month lock-in period and an orderly market undertaking thereafter. Completion of the Transaction will take place once formalities have been completed by Pearlside in order for the Company and Concordia's respective shareholdings in Pearlside to be registered. It is expected that this will take place in the next 30 days.\n \n \n \n \n \n Since 30 May 2019 when Concordia invested €1 million in to Pearlside at an implied €6 million pre-money valuation, the Project has seen 18 months of progr...