Shares in DekelOil extended their recovery after the palm oil group, fresh from a cash call to raise money for a West African mill investment, revealed that fund manager Miton Group had lifted its stake to 19%.

Miton Group has raised to 470.6m shares, from 70.7m shares, its investment in Dekeloil, equivalent to an investment of some £5m, a filing showed.

The move represents a vote of faith in DekelOil's prospects, a person close to the palm oil group said, noting that Gervais Williams, the manager of a number of Miton funds, "is a renowned fan of stocks with dividend potential.

"This significant increase in Miton's holdings from 5% is testament to his belief that DekelOil could fit this criteria in the future."

Shares rise

The investment comes the week after DekelOil unveiled a £12.75m share sale, in part to purchase a further stake in an Ivory Coast palm oil interest.

DekelOil raised its stake in the venture, which runs a mill in Ayenouan, to 86%.

London-based Cantor Fitzgerald said last week that it believed the share sale "should help to institutionalise DekelOil's shareholder list", besides "adding some liquidity" to trading in the stock.

The broker at the time raised to 23.6p, from 22.5p, its target price for DekelOil shares, on which it kept a "buy" rating.

DekelOil shares, fresh from a one-to-10 consolidation, stood up 3.1% at 13.4p in morning deals in London.