DekelOil buys remaining 14% stake in West African palm oil project

Agriculture producer DekelOil Public now owns 100% of a palm oil project in the Côte d'Ivoire after it bought the remaining 14.25% stake in its joint venture with Singapore-based Biopalm Energy.

The AIM-listed plantation group bought the remaining stake in the Ayenouan project that it did not already own, including a large crude palm oil mill, through the issue of 35.45m shares of €0.0003 each in the company to Biopalm at 13.25p per share.

Biopal will hold about 12.51% in DekelOil.

This equates to a purchase price of the remaining 285 shares in CS DekelOil Siva of €21,428.57 per share at a fixed pound and euro exchange rate of 1.3, and 11.5% premium to the exchange rate of about 1.17.

The premium on both the conversion price and the exchange rate results in DekeOil’s shareholders gaining an additional 14.25% in the project through the issue of only 12.52% in new shares in DekelOil.

The new shares are expected to trade on AIM around 12 January and following admission, the company’s share capital will consist of 283.41m shares.

Lincoln Moore, executive director of DekelOil, said, "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."

The acquisition completes the process initiated in May 2016 when a circular was sent to DekeOil's shareholders for the company to buy 30.5% in CS DekelOil Siva which Biopalm then held and also the acquisition in July 2016 of a further 4.25% of Biopalm's shares in CS DekelOil Siva.

Shares in DekelOil were up 3.37% to 11.50p at 1009 GMT.