Business
Gains 100% Interest in Profitable Palm Oil Project
Gains 100% Interest in Profitable Palm Oil Project.
About this update from Dekel Agri-vision Plc
[{"type":"text","content":"\n \nRNS Number : 6016T Dekeloil Public Limited 09 January 2017 \n\n \nDekelOil Public Limited / Index: AIM / Epic: DKL / Sector: Food Producers\n9 January 2017\nDekelOil Public Limited \n('DekelOil' or the 'Company')\nGains 100% Interest in Profitable Palm Oil Project\n \nDekelOil 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').\n \nThe 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. \n \nConsideration for the Acquisition is being satisfied via the issue of 35,455,111 ordinary shares of €0.0003367 (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 €21,428.57 per share at a fixed £/€ exchange rate of 1.3, an 11.5 per cent premium to the prevailing £/€ 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. \n \nFollowing 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. \n \nLincoln Moore, Executive Director of DekelOil, commented, \"Today's acquisition has been secured on terms that are value...