SINGAPORE, Jan. 8, 2019 /PRNewswire/ -- Kenon Holdings
Ltd. (NYSE: KEN) (TASE: KEN) (together with its
wholly-owned subsidiary Quantum (2007) LLC,
"Kenon") announces updates with respect to Qoros
Automobile Co., Ltd. ("Qoros"), in which Kenon has a 24%
interest.
In January 2018, Kenon announced
an investment in Qoros by a China-based investor related to the Baoneng
group (the "Majority Shareholder") to acquire a 51% interest
in Qoros, which reduced Kenon's interest in Qoros to 24%.
Kenon today announces it has entered into an agreement to sell
half of its remaining interest in Qoros (i.e. 12%) to the Majority
Shareholder for a purchase price of RMB
1,560 million (approximately US$227 million), which is based on the same
post-investment valuation as the initial investment by the Majority
Shareholder. The sale is not being made pursuant to the put option
described in Kenon's report on Form 6-K dated January 8, 2018 (the "January 6-K").The
sale is subject to obtaining relevant third party consents and
other closing conditions, including approvals by relevant
government authorities.
Following completion of the sale Kenon will hold a 12% interest
in Qoros, the Majority Shareholder will hold 63% and Chery will own
25%.
As previously disclosed in the January 6-K, the Majority
Shareholder is required to assume its pro rata share of guarantees
and equity pledges of Kenon and Chery based on its equity ownership
in Qoros, including changes in its ownership.
Kenon retains its rights under the put option over its remaining
12% stake in Qoros as described in the January 6-K. Kenon will
evaluate its options with respect to its remaining stake in Qoros,
including whether or not to exercise its rights under the put
option, in accordance with its strategy and other relevant factors
relating to its interest in Qoros. In addition, Kenon may in the
future sell further portions or all of its remaining stake in Qoros
to the Majority Shareholder or otherwise.
Caution Concerning Forward-Looking Statements
This press release includes forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These statements include statements with respect to Kenon's
agreement to sell a portion of its interest in Qoros to the
Majority Shareholder, the obligation of the Majority Shareholder to
assume its pro rata shares of guarantee and pledge obligations, the
put option over Kenon's remaining interest and the statement that
Kenon may sell further portions or all of its interest in Qoros and
statements with respect to Kenon's strategy with respect to its
interest in Qoros. These statements are based on Kenon's
management's current expectations or beliefs, and are subject to
uncertainty and changes in circumstances.
These forward-looking statements are subject to a number of
risks and uncertainties, many of which are beyond Kenon's control,
which could cause the actual results to differ materially from
those indicated in such forward-looking statements. Such risks
include the risk that third party consents and approvals are not
obtained or other closing conditions are not met and therefore (or
for any other reason) the sale is not completed, the Majority
Shareholder does not assume its proportionate share of guarantees
and pledges, Kenon does or does not sell further interests in Qoros
or does not or is not able to exercise its rights under the put
option over its remaining stake in Qoros, and other risks and
factors, including those risks set forth under the heading "Risk
Factors" in Kenon's Annual Report on Form 20-F filed with the SEC
and other filings. Except as required by law, Kenon undertakes no
obligation to update these forward-looking statements, whether as a
result of new information, future events, or otherwise.
Contact Info:
Kenon Holdings Ltd.
Jonathan Fisch
Director, Investor Relations
jonathanf@kenon-holdings.com
Tel: +65-6351-1780
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SOURCE Kenon Holdings Ltd.