DekelOil Plc (LON:DKL) has confirmed that it is in talks over a potential deal which would be classed as a ‘substantial transaction’.
The West Africa palm oil group revealed it is working on a deal to acquire majority ownership of Norpalm, which has a vertically integrated palm oil operation in West Ghana.
Norpalm has some 4,000 hectares of mature palm plantations under ownership and it also acquires palm fruit bunches from local producers. It operates a 30 tonne per hour mill and a kernel oil press which yields some 2,000 tonnes of palm kernel oil into the Ghanaian market.
Specifically, the talks are with the board and certain shareholders in Norpalm AS – which owns 68.6% of the Norpalm business.
“Discussions are still ongoing and therefore there can be no guarantee that the potential transaction will proceed,” the company said in a statement.
“The directors intend that the proposed transaction would be financed from a combination of DekelOil's existing cash resources, new equity partners at project level and debt financing. Further announcements will be made in due course as appropriate. Further announcements will be made in due course as appropriate.”