26th Nov 2013 10:44
LONDON (Alliance News) - Palm Oil developer Equatorial Palm Oil PLC Tuesday said it had raised GBP7.69 million before expenses after selling 153.8 million shares to Kuala Lumpur Kepong Berhad at 5 pence each in a share subscription offer.
The deal has taken Kuala Lumpur Kepong Berhad's stake in the company to 54.8%, from 20.1%, meaning that the Malaysian firm is now required to make a takeover offer for the rest of the company under UK takeover rules. It said a further announcement on this will be made in due course.
It said the net proceeds will be used to further progress the development of the company's palm oil project in Liberia and for general working capital purposes.
"KLK is one of the largest palm oil producers in the world and the company will greatly benefit from their many years of expertise in oil palm development. Having certainty of funding will ensure an exciting period of growth for the company," Equatorial Palm Oil Chairman Michael Frayne said in a statement.
Equatorial Palm Oil shares were up 1.7% at 5.34 pence Tuesday morning. It had first confirmed funding talks and a potential resulting takeover offer last month.
By Steve McGrath; [email protected]; @stevemcgrath1
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