Dekel acquires further interest in Tiebissou Cashew Project

(Sharecast News) - West Africa-focussed agriculture company Dekel Agri-Vision has completed the acquisition of an additional 14.2% interest in the large scale raw cashew nut processing project at Tiebissou, Côte d'Ivoire, it announced on Thursday.
The AIM-traded firm said that, following the acquisition, it now held a 52% controlling interest in the project, which was on course to begin raw cashew nut processing operations at an initial annual rate of 10,000 tonnes in the second quarter of 2021.

It said that the project would become its second producing asset, alongside its established 100%-owned palm oil operation at Ayenouan, also in Côte d'Ivoire.

The company said it was issuing 28,551,800 shares, and in exchange would receive a 14.2% interest in Pearlside Holdings, which is the parent of Capro CI SA, the entity developing the project.

It noted that the consideration shares represented 6.3% of its enlarged issued capital, adding that they would be subject to a 12-month lock-in period and an orderly market undertaking thereafter.

Following completion, Dekel would consolidate Pearlside Holdings, with the board adding that it retained an option over a further 16.7% interest in Pearlside.

Dekel said the cashew project at Tiebissou was undergoing a phased development to capitalise on a "major shortfall" in cashew processing capacity in Côte d'Ivoire, which is one of the world's most prolific cashew growers.

It said the first phase was targeting an initial annual capacity to process 10,000 tonnes of raw cashew nuts.

The second phase would involve a 50% increase in capacity at the plant to 15,000 tonnes per annum within a 24-month timeframe, by increasing the number of shifts of employees at the plant from two to three per day, negating the need for any extra capital outlay.

Dekel said the third phase would target a doubling of capacity to 30,000 tonnes per annum.

"This transaction, in our view, represents excellent value for Dekel's shareholders as well as third party endorsement of Dekel's value and its growth credentials," said executive director Lincoln Moore.

"With the Tiebissou Cashew Project expected to commence production in the second quarter of 2021, and our palm oil operations on track to post a material year on year improvement for the second half, we are confident that both the value and growth case for Dekel will be there for all to see in the months ahead."

At 1237 GMT, shares in Dekel Agri-Vision were up 7.31% at 2.79p.