June 28, 2022

Ztrdam

Good Business

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 plans a dividend distribution of $552 million by a funds reduction (subject to approval by the shareholders and by the courtroom). Ofer, who holds 60.3% of Kenon, will get $333 million. Ofer acquired a $114 million slice of the $189 million dividend that Kenon distributed in January this yr.

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Kenon noted a internet financial gain attributable to shareholders of $930 million for 2021. This follows a $507 million profit for 2020. In its 2021 financial statements, Kenon reported that in March it sold six million shares in Zim Built-in Shipping Solutions 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 hard cash at the end of March 2022, but this week that quantity will rise to $982 million, though the organization is absolutely free of credit card debt. The cause 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.

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As talked about, Kenon ideas to exploit its accumulated funds to distribute a dividend of $10.25 per share ($552 million) as a result of a cash reduction. The enterprise will check with its shareholders to approve the shift at the annual shareholders meeting on Could 19, and at the very same time it will use for acceptance to the Higher Courtroom in Singapore, where it is registered.

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Other than its remaining 20.7% stake in Zim, truly worth some $1.83 million, Kenon holds 58.8% of electricity generator OPC Energy, 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 company Baoneng Group for $245 million, but Baoneng has failed to make the expected payments beneath the sale agreement.

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Kenon suggests that in the fourth quarter of 2021 it instituted arbitration proceedings versus Baoneng Group just before the China Worldwide Economic and Trade Arbitration Fee. The proceedings go on.

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At the shut of investing in New York on Friday, Kenon Holdings experienced a sector cap of $3.58 billion. More than the past two a long time, investment in Kenon shares has yielded a return of 383%, altered for dividends.

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Revealed by Globes, Israel business enterprise news – en.globes.co.il – on April 3, 2022.

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

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