SINGAPORE, March 30, 2018 /PRNewswire/ -- Kenon Holdings
Ltd. (NYSE: KEN) (TASE: KEN) ("Kenon") announces updates in respect of its holding of OPC Energy ("OPC"),
which is listed on the Tel Aviv Stock Exchange ("TASE") and in which Kenon holds a 76% interest, and OPC's development
project Tzomet Energy.
OPC operates and develops power facilities in Israel. In April 2017, OPC entered into
agreements (including an option agreement) for the acquisition of 95% of the shares of Tzomet Energy Ltd., which holds the rights
to develop a natural gas-fired power station in Israel with capacity of approximately 396 MW,
for total consideration of $23 million, subject to adjustment. In August
2017, the Israel Electricity Authority (the "EA") received a letter from the Israel Concentration Committee stating
that it believed that, for reasons of broad economy concentration (i.e. taking into account businesses owned by related entities
of Kenon's controlling shareholder), OPC should not be granted a contingent license for the construction of the planned facility.
In March 2018, OPC completed the acquisition of 95% of the shares of Tzomet Energy, although Tzomet
still requires (among other requirements) a contingent license from the EA to proceed with construction of the planned
facility.
In view of the above, Kenon is considering its options with respect to its ownership interest in OPC, including a potential
sale of its interest in OPC in whole or in part. Such a sale, if agreed and consummated, would be made consistent with
Kenon's strategy to realize the value of its businesses for its shareholders, which may include monetization of its businesses.
There is no assurance that Kenon will proceed with any such sale or what the terms of such a sale may be, and any sale may
require consents.
Such a sale, if agreed and consummated would be subject to "Lock up" regulations of the Tel Aviv Stock Exchange.
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 Kenon's interest in OPC and OPC's development project Tzomet Energy, including
statements with respect to Kenon's consideration of its options with respect to its interest in OPC which may include a potential
sale of its interest in OPC, and 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 risk that the EA license is not granted, that the Tzomet project is not completed, that Kenon does not sell its
interest in OPC and the terms of any such sale and the impact of such a sale on Kenon 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
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SOURCE Kenon Holdings Ltd.