July 21, 2024

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Kenon sells part of Zim stake, plans $552m dividend

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Kenon Holdings (TASE: KEN NYSE: KEN), controlled by Idan Ofer, is stocking up on cash and programs a dividend distribution of $552 million as a result of a capital reduction (topic to approval by the shareholders and by the court). Ofer, who holds 60.3% of Kenon, will acquire $333 million. Ofer been given a $114 million slice of the $189 million dividend that Kenon distributed in January this yr.

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Kenon documented a web profit attributable to shareholders of $930 million for 2021. This follows a $507 million revenue for 2020. In its 2021 fiscal statements, Kenon noted that in March it offered 6 million shares in Zim Integrated Delivery Companies Ltd. for $463 million.

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The sale diminished Kenon’s keeping in Zim from 25.7% to 20.7%. Thanks to the sale, Kenon had $504 million cash at the end of March 2022, but this week that sum will increase to $982 million, even though the firm is cost-free of financial debt. The purpose is a $2.04 billion dividend that Zim will distribute on April 4, of which Kenon’s share is $503 million, or $478 million publish tax.

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As outlined, Kenon programs to exploit its accumulated money to distribute a dividend of $10.25 per share ($552 million) via a money reduction. The company will request its shareholders to approve the go at the once-a-year shareholders assembly on May well 19, and at the exact time it will apply for approval to the Substantial Courtroom in Singapore, where by it is registered.

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Other than its remaining 20.7% stake in Zim, well worth some $1.83 million, Kenon retains 58.8% of power generator OPC Electricity, worthy of NIS 4.33 billion ($1.36 billion), and 12% of Chinese vehicle maker Qoros Automotive. In April 2021, Kenon agreed a sale of its Qoros stake to Chinese enterprise Baoneng Team for $245 million, but Baoneng has unsuccessful to make the required payments under the sale arrangement.

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Kenon says that in the fourth quarter of 2021 it instituted arbitration proceedings in opposition to Baoneng Group right before the China Worldwide Economic and Trade Arbitration Commission. The proceedings keep on.

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At the close of buying and selling in New York on Friday, Kenon Holdings had a market place cap of $3.58 billion. Around the earlier two several years, investment decision in Kenon shares has yielded a return of 383%, altered for dividends.

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Printed by Globes, Israel small business information – en.globes.co.il – on April 3, 2022.

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© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

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