SINGAPORE, Feb. 22, 2018 /PRNewswire/ -- Kenon Holdings
Ltd. ("Kenon") (NYSE: KEN) (TASE: KEN) announces that its Board of Directors has approved a distribution in an aggregate
amount of US$665 million, or US$12.35 per share (the
"Distribution"), to Kenon's shareholders of record as of the close of trading on March 8,
2018 (the "Record Date") on March 22, 2018 (the "Payment Date") (the
"Distribution").
In December 2017, Kenon's shareholders approved a capital reduction, contingent upon the
approval of the High Court of the Republic of Singapore, to permit a distribution to
shareholders of a portion of the proceeds received from the sale of Kenon's Latin American and Caribbean power generation and distribution businesses (the "Sale"). The Sale was completed at
the end of 2017. The capital reduction of up to $750 million was approved by the High Court of the
Republic of Singapore on February 20, 2018, enabling Kenon to
effect a distribution of a portion of the proceeds received from the Sale.
Kenon's Board of Directors considered a number of factors in determining the amount of the Distribution, including the amount
of proceeds from the Sale remaining after the repayment of debt, the payment of tax and other expenses, and Kenon's anticipated
cash needs after the Distribution, and believes that the Distribution is in the best interests of Kenon's
shareholders. Following Kenon's payment of the Distribution, Kenon will retain cash in excess of $50
million.
The Sale and the Distribution are consistent with our strategy of realizing the value of our businesses for our
shareholders.
Additional Information about the Distribution
The New York Stock Exchange's (the "NYSE") ex-dividend date, which is the date on which Kenon's shares will begin
trading on the NYSE without the entitlement to the Distribution, is March 7, 2018 (the "NYSE
Ex-Dividend Date"). The NYSE will manually adjust the price of Kenon's shares on the NYSE Ex-Dividend Date to reflect the
completion of the Distribution.
The Tel Aviv Stock Exchange's ("TASE") ex-dividend date, which is the date on which Kenon's shares will begin trading
on the TASE without the entitlement to the Distribution, is March 8, 2018 (the "TASE Ex-Dividend
Date"). The TASE will manually adjust the price of Kenon's shares on the TASE Ex-Dividend date to reflect the completion of
the Distribution.
We encourage you to contact your bank, broker, nominee or other institution if you have any questions regarding the mechanics
and timing of having the proceeds of the Distribution attributable to your shares credited to your account.
Singapore tax is not expected to be imposed on Kenon's shareholders in connection with the
Distribution. Nevertheless, the Distribution may constitute a taxable event to Kenon's shareholders according to their
jurisdiction and the local tax law applicable (including for the purpose of withholding tax in accordance with applicable law
and/or regulation), unless a specific exemption is available. Kenon's shareholders should consult their tax advisors with respect
to the federal, state, and/or any other local tax consequences of the Distribution, including the classification of the
Distribution for tax purposes in light of the fact that the Distribution will be made, in whole or in part, by way of a capital
reduction, and the potential imposition of withholding taxes in connection with the Distribution.
About Kenon
Kenon is a holding company that operates dynamic, primarily growth-oriented businesses. The companies it owns, in whole or in
part, are at various stages of development, ranging from established, cash-generating businesses to early stage development
companies. Kenon's businesses consist of:
- OPC Energy (76% interest) – a leading owner, developer and operator of power generation facilities in the Israeli power
market;
- Qoros (24% interest) – a China-based automotive company;
- ZIM (32% interest) – an international shipping company; and
- Primus Green Energy, Inc. (91% interest) – an early stage developer of alternative fuel technology.
Kenon remains committed to its strategy to realize the value of its businesses for its shareholders. In connection with this
strategy, Kenon may provide its shareholders with direct access to its businesses, which may include spin-offs, listings,
offerings, distributions or monetization of its businesses. Kenon is actively exploring various ways to materialize this strategy
in a rational and expeditious manner. For further information on Kenon's businesses and strategy, see Kenon's publicly available
filings, which can be found on the SEC's website at www.sec.gov.
Please also see http://www.kenon-holdings.com for
additional information.
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 about a dividend to shareholders, including the timing of the Payment Date,
Record Date, Ex-Dividend Dates, and the crediting of accounts with the Distribution proceeds, as well as the amount of cash to be
retained by Kenon following the dividend. 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, which could cause the actual results to differ materially from those indicated in Kenon's forward-looking
statements. Such risks include the risks relating to a failure by Kenon to complete the Distribution, the timing of the Payment
Date, Record Date, Ex-Dividend Dates, and the crediting of accounts with the Distribution , that the amounts retained by Kenon
are not sufficient to meet its cash needs, and other risks and factors, including those set forth under the heading "Risk
Factors" in Kenon's Annual Report on Form 20-F, filed with the U.S. Securities and Exchange Commission. 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:
Jonathan Fisch
Director, Investor Relations
jonathanf@kenon-holdings.com
View original content:http://www.prnewswire.com/news-releases/kenon-announces-record-date-and-distribution-to-shareholders-300602740.html
SOURCE Kenon Holdings Ltd.