DekelOil in talks to buy West Ghana palm oil business

Following speculation in the Norwegian press, DekelOil, which has hitherto been focused on its Ayenouan palm oil project in Côte d'Ivoire, confirmed it was in talks with Norpalm AS, a Norwegian company which owns a palm oil production company in Western Ghana, about buying its subsidiary.

Dekel said it is in discussions with both the board of Norpalm and certain of the Norwegian company's shareholders over a potential acquisition of all or the majority of the shares in the Ghana businsess, of which Norpalm AS holds 68.6%.

Norpalm Ghana, which is located in West Ghana close to the border with the Ivory Coast, operates a 30 tonne per hour mill which also purchases fresh fruit bunches from local producers.

"In addition to the revenues it receives from approximately 15,000 tonnes of crude palm oil sold into the domestic Ghanaian market, it also operates a palm kernel oil press which produces approximately 2,000 tn of palm kernel oil in the Ghanaian market," Dekel said.

It added that the potential transaction, if it were to proceed, would be classified as a substantial transaction for the purposes of the AIM Rules for companies, so would need shareholder approval.

Dekel said the deal would be financed from a combination of its existing cash resources, new equity partners at project level and debt financing.