Dekeloil Public Limited Maiden Dividend (3023U)

TIDMDKL

RNS Number : 3023U

Dekeloil Public Limited

17 January 2017

DekelOil Public Limited / Index: AIM / Epic: DKL / Sector: Food Producers

17 January 2017

DekelOil Public Limited ('DekelOil' or the 'Company')

Dividend Policy and Maiden Dividend

DekelOil Public Limited, operator and 100% owner of the profitable and vertically integrated Ayenouan palm oil project in Côte d'Ivoire ('Ayenouan' or the 'Project'), is pleased to announce the adoption of a progressive dividend policy and, in line with this, its intention to pay a maiden dividend in H1 2017 in respect of the year ended 31 December 2016.

The decision to adopt a progressive dividend policy follows the progress made both in terms of operations on the ground at Ayenouan and at the corporate level, including the refinancing of senior debt on improved terms and the cancellation of certain capital notes, the settlement of which ranked above the payment of dividends to ordinary shareholders. In addition, following the increase in its interest in Ayenouan to 100% from 51% over the last nine months, DekelOil's share of the Project's revenues and net profits is expected to show a significant increase going forward.

Dividends will be distributed to qualifying shareholders following the release of the Company's audited results for the financial year ended 31 December 2016. An update detailing the relevant record and ex-dividend dates will be provided in due course. The total maiden dividend to be paid in 2017 is expected to amount to approximately GBP500,000 and shareholders will have the option to receive either cash or shares by way of a scrip dividend. Shareholders are advised that the default option is cash and that the appropriate documentation will be sent to shareholders in due course. Certain executive directors of the Company intend to receive all or part of their dividends in new ordinary shares, as detailed in the table below:

 
 Executive Director    Dividend election (cash/shares) 
--------------------  -------------------------------- 
 Youval Rasin          50%/50% 
--------------------  -------------------------------- 
 Yehoshua Shai Kol     50%/50% 
--------------------  -------------------------------- 
 Lincoln Moore         0%/100% 
--------------------  -------------------------------- 
 

After taking into account existing cash flow, capex commitments, and the Company's current prospects, the Board expects to maintain a progressive policy over the next three years at which point the policy will be reassessed based on future years' trading results, the prevailing economic outlook, and the availability of distributable reserves. The Company will also consider making distributions to shareholders in the form of special dividends if and when it is appropriate to do so.

DekelOil Executive Director Lincoln Moore said, "Joining the dividend list is a major achievement for any company, let alone one that only came to market in 2013 with the vision to provide a much-needed outlet for fresh fruit bunches grown by thousands of local smallholders by building one of West Africa's largest crude palm oil extraction mills. With our state of the art mill entering its fourth year of operations, our balance sheet is now more reflective of the profitable palm oil producer we are today. Having recently confirmed a 100% interest in Ayenouan, we have a proven cash flow generative platform in place that can fund not only regular dividends, but also our future expansion plans at both Ayenouan and elsewhere. This is an exciting period for DekelOil shareholders and I look forward to providing further updates on our progress."

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 or contact:

 
 DekelOil Public Limited 
  Youval Rasin 
  Shai Kol                             +44 (0) 207 
  Lincoln Moore                           236 1177 
 Cantor Fitzgerald Europe 
  (Nomad and Broker) 
  Andrew Craig                         +44 (0) 207 
  Richard Salmond                         894 7000 
 
   Beaufort Securities Limited 
   (Broker) 
   Zoe Alexander                       +44 (0) 207 
   Elliot Hance                           382 8300 
 Optiva Securities Limited 
  (Broker) 
  Christian Dennis                     +44 (0) 203 
  Jeremy King                             137 1903 
 St Brides Partners Ltd (Investor 
  Relations) 
  Elisabeth Cowell                     +44 (0) 207 
  Frank Buhagiar                          236 1177 
 

Notes:

DekelOil Public Limited is a low cost producer of palm oil in West Africa, which it is focused on rapidly expanding. To this end, it has an 85.75% interest in one of the largest oil processing mills based in Côte d'Ivoire, which has a capacity of 70,000 tons of CPO. Feedstock for the Mill comes from several co-operatives and thousands of smallholders, however it also has nearly 1,900 hectares of its own plantations. Furthermore, it has a world-class nursery with a 1 million seedlings a year capacity.

This information is provided by RNS

The company news service from the London Stock Exchange

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January 17, 2017 02:01 ET (07:01 GMT)