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DekelOil (“DKL”) gains 100% ownership in the palm oil project in Cote d’Ivoire.

The Acquisition completes the process initiated in May 2016 when a circular was sent to DekelOil's Shareholders regarding the exercise of the First Option by the Company to acquire 30.5 per cent of the shares in CSDS which Biopalm then held and the subsequent acquisition in July 2016 of a further 4.25 per cent of Biopalm's shares in CSDS.

Consideration for the Acquisition is being satisfied via the issue of 35,455,111 ordinary shares of €0.0003367 (the 'New Ordinary Shares') in the Company to Biopalm at 13.25p per share, a premium of 19.2 per cent to the closing share price on 6 January 2017.  This equates to a purchase price of the remaining 285 shares in CSDS of €21,428.57 per share at a fixed £/€ exchange rate of 1.3, an 11.5 per cent premium to the prevailing £/€ exchange rate of c.1.17*. The premium achieved on both the conversion price and the prevailing exchange rate results in shareholders of DekelOil obtaining an additional 14.25 per cent in the Project via the issue of only 12.52 per cent in new shares in DekelOil. The Directors therefore believe that the Acquisition is value accretive for existing shareholders.  

Following the issue of the New Ordinary Shares, Biopalm will hold approximately 12.51 per cent of the issued share capital in DekelOil and has agreed to certain orderly market restrictions in respect of its shareholding in DekelOil.

Lincoln Moore, Executive Director of DekelOil, commented, "Today's acquisition has been secured on terms that are value accretive for our existing shareholders.  Equally as important however, is that it gives DekelOil 100% ownership of our producing and profitable palm oil project at Ayenouan.  Our shareholders will also enjoy 100% of the benefits of all new initiatives going forward and I look forward to providing further updates on our progress in due course."

 

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