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 funds and plans a dividend distribution of $552 million through a funds reduction (topic to acceptance by the shareholders and by the courtroom). Ofer, who retains 60.3% of Kenon, will get $333 million. Ofer received a $114 million slice of the $189 million dividend that Kenon distributed in January this calendar year.

Kenon noted a net earnings attributable to shareholders of $930 million for 2021. This follows a $507 million profit for 2020. In its 2021 financial statements, Kenon noted that in March it bought six million shares in Zim Integrated Shipping Companies Ltd. for $463 million.




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The sale lowered Kenon’s holding in Zim from 25.7% to 20.7%. Many thanks to the sale, Kenon had $504 million funds at the end of March 2022, but this week that amount of money will increase to $982 million, whilst the organization is totally free of credit card 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 article tax.

As stated, Kenon plans to exploit its amassed income to distribute a dividend of $10.25 per share ($552 million) by means of a cash reduction. The company will question its shareholders to approve the move at the yearly shareholders conference on May possibly 19, and at the identical time it will utilize for acceptance to the High Courtroom in Singapore, where by it is registered.

Aside from its remaining 20.7% stake in Zim, worth some $1.83 million, Kenon holds 58.8% of electricity generator OPC Electricity, really worth 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 organization Baoneng Group for $245 million, but Baoneng has failed to make the essential payments below the sale arrangement.

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

At the close of investing in New York on Friday, Kenon Holdings had a market place cap of $3.58 billion. Around the earlier two a long time, investment in Kenon shares has yielded a return of 383%, modified for dividends.

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

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