Dekel Agri-Vision PLC Completes acquisition of cashew project interest (7972F)
November 19 2020 - 1:00AM
UK Regulatory
TIDMDKL
RNS Number : 7972F
Dekel Agri-Vision PLC
19 November 2020
Dekel Agri-Vision Plc / Index: AIM / Epic: DKL / Sector: Food
Producers
Dekel Agri-Vision Plc ('Dekel' or the 'Company')
Completion of acquisition of additional interest in large scale
cashew project
Dekel Agri-Vision Plc, the West African focused agriculture
company, is pleased to announce that, further to the announcement
on 3 November 2020, the Company has now completed the acquisition
of an additional 14.2% interest in the large scale raw cashew nut
('RCN') processing project at Tiebissou, Côte d'Ivoire (the 'Cashew
Project') (the 'Acquisition'). Following the Acquisition, Dekel now
holds a 52% controlling interest in the Cashew Project, which is on
course to commence RCN processing operations at an initial annual
rate of 10,000tpa in Q2 2021. At this point, the Cashew Project
will become Dekel's second producing asset, alongside the Company's
established 100%-owned palm oil operation at Ayenouan, Côte
d'Ivoire.
Allotment of Shares
The Company will now issue 28,551,800 shares (the "Consideration
Shares") and in exchange Dekel will receive a 14.2% interest in
Pearlside Holdings Ltd ('Pearlside'), the wholly owned parent of
Capro CI SA, the entity developing the Project.
The Consideration Shares represent 6.3% of Dekel's enlarged
issued capital and are subject to a 12 month lock-in period and an
orderly market undertaking thereafter.
Following completion of the Acquisition, Dekel will consolidate
Pearlside Holdings Limited. Dekel retains an option over a further
16.7% interest in Pearlside.
The Tiebissou Cashew Project
The Cashew Project at Tiebissou is undergoing a phased
development to capitalise on a major shortfall in cashew processing
capacity in Côte d'Ivoire, one of the world's largest cashew
growers. Phase 1 is targeting an initial annual capacity to process
10,000 tonnes of RCN. Phase 2 will involve a 50% increase in
capacity at the plant to 15,000 tpa within a 24 month timeframe by
increasing the number of shifts of employees at the plant from two
to three per day, thereby negating the need for any extra capital
outlay. Phase 3 will target a doubling of capacity to 30,000 tpa.
The commissioning of the plant at Tiebissou is expected to take
place in Q2 2021.
Dekel Agri-Vision Plc Executive Director Lincoln Moore said:
"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. With the Tiebissou Cashew Project
expected to commence production in Q2 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."
Total Voting Rights
Following the issue of the Consideration Shares, the total
issued share capital of the Company is 453,203,286 ordinary shares
with allotment on or around 25 November 2020. As the Company does
not hold any shares in Treasury, this figure may be used by
shareholders in Dekel as the denominator for the calculations by
which they will determine if they are required to notify their
interest in, or a change to their interest in, the share capital of
the Company.
The 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 ('MAR'). Upon the
publication of this announcement via a Regulatory Information
Service ("RIS"), this inside information is now considered to be in
the public domain.
** ENDS **
For further information please visit the Company's website
www.dekelagrivision.com or contact:
Dekel Agri-Vision Plc
Youval Rasin
Shai Kol
Lincoln Moore +44 (0) 207 236 1177
Arden Partners Plc (Nomad and Joint Broker)
Paul Shackleton / Ruari McGirr /
Dan Gee-Summons (Corporate Finance)
Simon Johnson (Corporate Broking) +44 (0) 207 614 5900
Optiva Securities Limited (Joint Broker)
Christian Dennis
Jeremy King +44 (0) 203 137 1903
St Brides Partners Ltd (Investor Relations)
Frank Buhagiar
Cosima Akerman
Megan Dennison +44 (0) 207 236 1177
Notes:
Dekel Agri-Vision Plc is a multi-project, multi-commodity
agriculture company focused on West Africa. It has a portfolio of
projects in Côte d'Ivoire at various stages of development: a fully
operational palm oil project in Ayenouan where fruit produced by
local smallholders is processed at the Company's 60,000tpa crude
palm oil mill; a cashew processing project in Tiebissou, which is
due to commence production in Q2 2021.
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END
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