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

Stahlman
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Kenon Holdings (TASE: KEN NYSE: KEN), managed by Idan Ofer, is stocking up on funds and strategies a dividend distribution of $552 million by a funds reduction (subject matter to acceptance by the shareholders and by the courtroom). Ofer, who retains 60.3% of Kenon, will obtain $333 million. Ofer acquired a $114 million slice of the $189 million dividend that Kenon distributed in January this 12 months.

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Kenon documented a internet earnings attributable to shareholders of $930 million for 2021. This follows a $507 million gain for 2020. In its 2021 economic statements, Kenon documented that in March it bought six million shares in Zim Built-in Shipping and delivery Companies Ltd. for $463 million.

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The sale lessened Kenon’s keeping in Zim from 25.7% to 20.7%. Many thanks to the sale, Kenon experienced $504 million money at the end of March 2022, but this 7 days that amount will increase to $982 million, when the company is cost-free of credit card debt. The rationale is a $2.04 billion dividend that Zim will distribute on April 4, of which Kenon’s share is $503 million, or $478 million write-up tax.

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As pointed out, Kenon programs to exploit its accumulated money to distribute a dividend of $10.25 for each share ($552 million) by means of a funds reduction. The organization will inquire its shareholders to approve the transfer at the annual shareholders meeting on May 19, and at the exact same time it will utilize for approval to the Substantial Court docket in Singapore, in which 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 energy generator OPC Power, value 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 Group for $245 million, but Baoneng has failed to make the required payments under the sale agreement.

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Kenon suggests that in the fourth quarter of 2021 it instituted arbitration proceedings against Baoneng Team before the China International Economic and Trade Arbitration Fee. The proceedings carry on.

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At the shut of investing in New York on Friday, Kenon Holdings experienced a market cap of $3.58 billion. Around the earlier two decades, expenditure in Kenon shares has yielded a return of 383%, adjusted for dividends.

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Released by Globes, Israel 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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