Kenon sells part of Zim stake, plans $552m dividend
Kenon Holdings (TASE: KEN NYSE: KEN), controlled by Idan Ofer, is stocking up on funds and plans a dividend distribution of $552 million by way of a money reduction (matter to approval by the shareholders and by the court docket). Ofer, who holds 60.3% of Kenon, will get $333 million. Ofer acquired a $114 million slice of the $189 million dividend that Kenon dispersed in January this year.

Kenon noted a internet income attributable to shareholders of $930 million for 2021. This follows a $507 million profit for 2020. In its 2021 economic statements, Kenon described that in March it bought 6 million shares in Zim Built-in Shipping Products and services Ltd. for $463 million.




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The sale diminished Kenon’s keeping in Zim from 25.7% to 20.7%. Many thanks to the sale, Kenon had $504 million income at the conclude of March 2022, but this week that volume will increase to $982 million, although the firm is totally 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 put up tax.

As mentioned, Kenon plans to exploit its accrued funds to distribute a dividend of $10.25 for each share ($552 million) as a result of a capital reduction. The organization will request its shareholders to approve the shift at the yearly shareholders meeting on May well 19, and at the very same time it will implement for approval to the Large Court docket in Singapore, the place it is registered.

Apart from its remaining 20.7% stake in Zim, worthy of some $1.83 million, Kenon retains 58.8% of electric power generator OPC Electrical power, well worth NIS 4.33 billion ($1.36 billion), and 12% of Chinese auto maker Qoros Automotive. In April 2021, Kenon agreed a sale of its Qoros stake to Chinese business Baoneng Team for $245 million, but Baoneng has unsuccessful to make the needed payments beneath the sale agreement.

Kenon suggests that in the fourth quarter of 2021 it instituted arbitration proceedings against Baoneng Group right before the China Intercontinental Financial and Trade Arbitration Commission. The proceedings continue.

At the close of investing in New York on Friday, Kenon Holdings had a marketplace cap of $3.58 billion. About the previous two decades, investment in Kenon shares has yielded a return of 383%, adjusted for dividends.

Released by Globes, Israel company news – en.globes.co.il – on April 3, 2022.

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