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

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Kenon Holdings (TASE: KEN NYSE: KEN), managed by Idan Ofer, is stocking up on money and designs a dividend distribution of $552 million as a result of a cash reduction (topic to acceptance by the shareholders and by the court docket). 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 12 months.

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Kenon described a web earnings attributable to shareholders of $930 million for 2021. This follows a $507 million earnings for 2020. In its 2021 money statements, Kenon documented that in March it sold 6 million shares in Zim Integrated Shipping and delivery Services Ltd. for $463 million.

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The sale reduced Kenon’s holding in Zim from 25.7% to 20.7%. Many thanks to the sale, Kenon experienced $504 million dollars at the end of March 2022, but this week that amount of money will rise to $982 million, even though the firm is free of charge of personal 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 publish tax.

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As pointed out, Kenon programs to exploit its gathered funds to distribute a dividend of $10.25 for every share ($552 million) by a money reduction. The firm will inquire its shareholders to approve the go at the once-a-year shareholders meeting on May perhaps 19, and at the identical time it will use for acceptance to the Superior Court docket in Singapore, where by it is registered.

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Apart from its remaining 20.7% stake in Zim, worth some $1.83 million, Kenon retains 58.8% of ability generator OPC Vitality, really worth NIS 4.33 billion ($1.36 billion), and 12% of Chinese car 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 failed to make the required payments below the sale arrangement.

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Kenon suggests that in the fourth quarter of 2021 it instituted arbitration proceedings versus Baoneng Team right before the China Global Economic and Trade Arbitration Fee. The proceedings continue.

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At the near of trading in New York on Friday, Kenon Holdings experienced a sector cap of $3.58 billion. Over the past two years, investment in Kenon shares has yielded a return of 383%, adjusted for dividends.

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Printed 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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