Dekeloil makes significant stake in Tiebissou project ahead of schedule

West African focused agricultural company Dekeloil has acquired an initial 43.8% interest in the Tiebissou cashew processing project in Cote d'Ivoire via an investment into Pearlside Holdings.

Dekeloil said the early acquisition was a result of both the substantially lower valuation of €6m it secured in its new agreement and the significant premium at which its new consideration shares were issued.

The AIM-listed outfit will issue 52.45m new ordinary shares at a price of 4.5p each to cover the transaction, a premium of 46.3% to its closing price on 20 December.

Dekeloil will also hold an option to acquire a further 20.5% interest in Pearlside, the parent company of Tiebissou's operator Capro.

Executive director Lincoln Moore said: "The early acquisition of a 43.8% interest in Tiebissou is a significant event for DekelOil and one which we believe will generate long-term value for shareholders."

"The share price premium is an endorsement of our vision to build a multi-project, multi-commodity agriculture company, the strategy we have in place to achieve this and our management team which."

As of 1100 GMT, Dekeloil shares had shot up 12.20% to 3.45p.