Business
Option to Acquire Majority Interest in Cashew Co.
Option to Acquire Majority Interest in Cashew Co..
About this update from Dekel Agri-vision Plc
[{"type":"text","content":"\n \nRNS Number : 5276S Dekeloil Public Limited 26 June 2018 \n\nThe 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. Upon the publication of this announcement via a Regulatory Information Service (\"RIS\"), this inside information is now considered to be in the public domain.\n \nDekelOil Public Limited / Index: AIM / Epic: DKL / Sector: Food Producers\n26 June 2018\nDekelOil Public Limited (\"DekelOil\" or the \"Company\")\nOption to acquire majority interest in Cashew Processing Company\n \nDekelOil Public Limited, the West African focused agricultural company, is pleased to announce it has agreed an option to acquire 58.5% of the existing issued share capital of Pearlside Holdings Ltd (\"Pearlside\"), an investment holding company (the \"Option\"). Pearlside has one wholly owned subsidiary Capro CI SA ('Capro'), a raw cashew nut (\"RCN\") business which is developing a large-scale 30,000tpa RCN processing project at Tiebissou in Côte d'Ivoire. Tiebissou complements DekelOil's existing projects in Côte d'Ivoire: Ayenouan, which produced 38,736 tonnes of Crude Palm Oil in 2017; and Guitry, a second 'seed to oil' palm oil project which is currently under development. \n \nAcquisition provides exposure to global cashew market\n· Tiebissou is located in the heart of Côte d'Ivoire's cashew producing region and three hours from the port of Abidjan\n· Similar collaborative model to DekelOil's producing palm oil project at Ayenouan including a state-of-the-art plant which will process RCNs grown by local smallholders \n· Phase 1 - construction of plant with an initial capacity to process 10,000tpa of RCNs produced by smallholders and in time, a cashew nut shell liquid ('CNSL') processing facility is also under consideration\no First production at 6ha site in Tiebissou targeted Q3-2019\no Development capital and turnkey contract with leading manufacturer are close to completion\n· Phase 2 - increase capacity to 30,000tpa over five years which is expected to be funded from operating cash flows\n \nAttractive economics of cashew processing in Côte d'Ivoire\n· High margin busine...