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LONDON (Alliance News) - Palm oil producer DekelOil PLC on Wednesday said it has agreed to acquire a further 5.0% stake in its majority-owned palm oil project in the Ivory Coast and will finance the deal via another share placing.
DekelOil announced in May it would raise its stake in CS DekelOil Siva Ltd, the joint venture which owns the Ayenouan palm oil project, to 81.5% from 51% previously, funding this with the placing of 812.1 million shares at 1.325 pence to raise GBP10.8 million. It is buying the stake from joint venture partner Biopalm Energy Ltd.
On Wednesday, DekelOil said it will buy another 5.0% interest in the project, taking its stake up to around 86%.
The further acquisition will be funded through the placing of 121.1 million DekelOil shares, also at 1.325p, to raise GBP1.6 million. DekelOil shares were up 2.0% to 1.30p early Wednesday.
In addition, a further 3.8 million shares are being placed at the same price on behalf of Yehoshua Shai Kol, the chief financial officer of Dekeloil.
DekelOil said Kol would sell 22.6 million shares pursuant to the original May placing, and the 3.8 million announced on Wednesday are in addition to this. The sale will leave Kol with 106.5 million DekelOil shares, or a 4.3% stake in the business.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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