Kenon Holdings (TASE: KEN NYSE: KEN), controlled by Idan Ofer, is stocking up on income and options a dividend distribution of $552 million through a money reduction (subject to approval by the shareholders and by the court docket). Ofer, who retains 60.3% of Kenon, will acquire $333 million. Ofer received a $114 million slice of the $189 million dividend that Kenon dispersed in January this year.

Kenon reported a net earnings attributable to shareholders of $930 million for 2021. This follows a $507 million profit for 2020. In its 2021 monetary statements, Kenon described that in March it marketed six million shares in Zim Built-in Delivery Companies Ltd. for $463 million.




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The sale decreased Kenon’s holding in Zim from 25.7% to 20.7%. Thanks to the sale, Kenon had $504 million income at the stop of March 2022, but this 7 days that quantity will rise to $982 million, whilst the business is totally free of 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.

As described, Kenon strategies to exploit its gathered cash to distribute a dividend of $10.25 for each share ($552 million) by a cash reduction. The enterprise will talk to its shareholders to approve the go at the annual shareholders assembly on Might 19, and at the same time it will use for approval to the Higher Court in Singapore, where by it is registered.

Besides its remaining 20.7% stake in Zim, value some $1.83 million, Kenon holds 58.8% of electric power generator OPC Electricity, worth NIS 4.33 billion ($1.36 billion), and 12% of Chinese motor vehicle maker Qoros Automotive. In April 2021, Kenon agreed a sale of its Qoros stake to Chinese corporation Baoneng Group for $245 million, but Baoneng has unsuccessful to make the required payments under the sale arrangement.

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

At the near of buying and selling in New York on Friday, Kenon Holdings had a market cap of $3.58 billion. About the past two several years, expenditure in Kenon shares has yielded a return of 383%, modified for dividends.

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

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