Dekel Agri-Vision PLC Increases interest in cashew project to 54% (8382H)
December 08 2020 - 01:00AM
UK Regulatory
TIDMDKL
RNS Number : 8382H
Dekel Agri-Vision PLC
08 December 2020
Dekel Agri-Vision Plc / Index: AIM / Epic: DKL / Sector: Food
Producers
Dekel Agri-Vision Plc ('Dekel' or the 'Company')
Increases interest in large scale cashew project to 54%
Dekel Agri-Vision Plc, the West African focused agriculture
company, is pleased to announce the acquisition of an additional 2%
interest in the large scale raw cashew nut ('RCN') processing
project at Tiebissou, Côte d'Ivoire (the 'Cashew Project'), which
increases the Company's interest in the Project to 54% (the
'Acquisition'). The Cashew Project remains on course to commence
production in Q2 2021, at which point it will become Dekel's second
producing asset, alongside the 100% owned palm oil operation at
Ayenouan, Côte d'Ivoire.
Under the terms of the Acquisition, Dekel is acquiring a further
2% beneficial interest in Pearlside Holdings Ltd ('Pearlside'), the
wholly owned parent of Capro CI SA, the entity developing the
Project, for 3,922,789 new ordinary shares in the Company (the
'Consideration Shares'), representing 0.86% of Dekel's enlarged
share capital. The Consideration Shares, which have been issued to
certain individual shareholders of Pearlside, will be subject to a
12 month lock-in period and an orderly market undertaking
thereafter. Dekel continues to retain an option over a further
16.7% interest in Pearlside.
The Acquisition is based on the same terms as the recent
exchange agreement entered into by the Company and Concordia
Corporation Ltd ('Concordia'), which resulted in Dekel acquiring an
additional 14.2% interest in the Cashew Project (see announcement
of 3 November 2020 for further details).
The plant remains on track to be commissioned in Q2 2021 at an
initial RCN processing capacity of 10,000 tonnes per annum. The
forward plan for the Cashew Project is to increase production by
50% to 15,000tpa within 24 months at no extra capital outlay by
increasing the number of shifts of employees at the plant from two
to three per day. From this level, it is envisaged cash flows
generated by the plant will largely fund a doubling in capacity to
30,000tpa. The Cashew Project is expected to be highly cash flow
generative from the outset as it will be capitalising on a major
shortfall in cashew processing capacity in Côte d'Ivoire, one of
the world's largest cashew growers.
Dekel Agri-Vision Plc Executive Director Lincoln Moore said: "As
with the Concordia Transaction earlier this month, we believe
today's acquisition of an additional interest in the Tiebissou
Cashew Project is a value accretive acquisition. Based on today's
prices, the Board estimates the project has the potential to
generate revenues in the region of EUR35-40 million per annum at a
30,000tpa processing capacity. We look forward to providing further
updates on our progress as we move towards first production in Q2
2021."
Allotment of Shares
The Company has issued 3,922,789 shares (the 'Consideration
Shares') and in exchange Dekel will receive a 2% interest in
Pearlside Holdings Ltd ('Pearlside'), the wholly owned parent of
Capro CI SA, the entity developing the Cashew Project. The
Consideration Shares represent 0.86% of Dekel's enlarged issued
capital and are subject to a 12 month lock-in period and an orderly
market undertaking thereafter.
Total Voting Rights
Following the issue of the Consideration Shares, the total
issued share capital of the Company is 457,126,075 ordinary shares
with allotment on or around 15 December 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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