Kenon sells part of Zim stake, plans $552m dividend
Kenon Holdings (TASE: KEN NYSE: KEN), managed by Idan Ofer, is stocking up on dollars and ideas a dividend distribution of $552 million by a cash reduction (subject to acceptance by the shareholders and by the courtroom). Ofer, who holds 60.3% of Kenon, will receive $333 million. Ofer received a $114 million slice of the $189 million dividend that Kenon distributed in January this year.

Kenon documented a net income attributable to shareholders of $930 million for 2021. This follows a $507 million financial gain for 2020. In its 2021 money statements, Kenon claimed that in March it bought 6 million shares in Zim Built-in Transport Solutions Ltd. for $463 million.




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The sale reduced Kenon’s holding in Zim from 25.7% to 20.7%. Many thanks to the sale, Kenon had $504 million dollars at the finish of March 2022, but this 7 days that amount of money will rise to $982 million, while the company is absolutely free of financial debt. The reason is a $2.04 billion dividend that Zim will distribute on April 4, of which Kenon’s share is $503 million, or $478 million submit tax.

As pointed out, Kenon strategies to exploit its accumulated money to distribute a dividend of $10.25 for each share ($552 million) as a result of a capital reduction. The business will request its shareholders to approve the go at the once-a-year shareholders meeting on May perhaps 19, and at the similar time it will utilize for acceptance to the Significant Court docket in Singapore, the place it is registered.

In addition to its remaining 20.7% stake in Zim, value some $1.83 million, Kenon retains 58.8% of power generator OPC Strength, truly worth NIS 4.33 billion ($1.36 billion), and 12% of Chinese car maker Qoros Automotive. In April 2021, Kenon agreed a sale of its Qoros stake to Chinese organization Baoneng Group for $245 million, but Baoneng has unsuccessful to make the necessary payments beneath the sale settlement.

Kenon claims that in the fourth quarter of 2021 it instituted arbitration proceedings from Baoneng Group in advance of the China International Economic and Trade Arbitration Fee. The proceedings keep on.

At the close of buying and selling in New York on Friday, Kenon Holdings experienced a current market cap of $3.58 billion. Above the earlier two a long time, financial commitment in Kenon shares has yielded a return of 383%, modified for dividends.

Published by Globes, Israel company information – en.globes.co.il – on April 3, 2022.

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