Dekeloil increases stake in Ayenouan Palm Oil Project in Côte d’Ivoire
June 17, 2016
Kerman & Co’s Capital Markets Team advised existing client, DekelOil Public Limited (AIM: DKL) on its equity fundraising to finance the proposed acquisition of an aggregate of approximately 35.5 per cent. stake in CS DekelOil Siva Limited, the producing palm oil project at Ayenouan, Côte d’Ivoire from its joint venture partner, Biopalm Energy Limited.
Dekeloil is the operator and an existing 51 per cent. owner of the vertically owned integrated Ayenouan producing palm oil project in Côte d’Ivoire. The proposed acquisition from Biopalm Energy Limited will increase Dekeloil’s stake in the project to approximately 86 per cent. By securing a greater proportion of the project’s growing revenues and cash flows, the acquisition also supports the wider company strategy to build a leading West African palm oil producer.
The Capital Markets Team advised Dekeloil with the fundraising of an aggregate of £12.7 million via placings with institutional and other investors of 959,637,080 ordinary shares of €0.00003367 each at a price of 1.325 pence per share, representing a premium of 1.9 per cent. to the closing share price on 23 May 2016.
Lincoln Moore, Executive Director of DekelOil, commented:
“The opportunity to add to our 51% interest in the vertically integrated palm oil project at Ayenouan was one we could not let pass. As our recent full year results demonstrated, Ayenouan has the potential to be both highly cash generative and profitable for many years to come”.
Joan Yu (Partner), led the Kerman & Co Capital Markets Team, supported by Jack Kemmish (Solicitor).