LONDON, UK / ACCESSWIRE / January 03, 2018 / Active-Investors.com has just released a free research report on Kenon Holdings Ltd (NYSE: KEN) ("Kenon"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=KEN as the Company’s latest news hit the wire. On January 01, 2018, the Company shared that Inkia Energy Ltd has completed the previously announced sale of its Latin American and Caribbean businesses. Inkia Energy is a wholly-owned subsidiary of IC Power Ltd, while IC Power is a wholly-owned power generation company of Kenon. Inkia Energy had entered into a sale agreement with infrastructure private equity firm I Squared Capital in November 2017. Register today and get access to over 1000 Free Research Reports by joining our site below:
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Kenon Holdings most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
Financial Impact of the transaction
The transaction is expected to yield nearly $1.332 billion of which $1.11 billion will be from the payments made by I Squared Capital and remaining $222 million is from the unconsolidated cash holdings with Inkia Energy. This values the transaction at approximately $1.177 billion after taking into consideration certain adjustments, including estimated working capital, debt and cash at the time of closing of the deal. As per terms of the agreement, I Squared Capital has agreed to assume the bonds valued $600 million which were issued by Inkia Energy in November and December 2017. Apart from this, Inkia Energy is expected to incur a one-time cost of approximately $254 million related to the transaction which includes transaction costs, management compensation, advisor fees, other expenses, and taxes. The taxes to be paid include any taxes payable in relation to the strategic restructuring of the remaining companies within the Kenon Group. The exercise is expected to simplify the Group's holding structure. Due to the restructuring Kenon will have direct interest in OPC Energy Ltd. In the event of any future sale of the stake in OPC, Kenon does not expect to have any tax-liability for the said transaction.
Kenon plans to use part of the funds from the transaction to pay off IC Power's outstanding debt of $43 million as well as to pay off its loan taken from Israel Corp. which is approximately $240 million, including accrued interest.
The transaction agreement includes a $175 million deferred payment obligation which has a four-year term with an accrued 8% interest payable in kind.
Kenon is expected to get approximately $619 million from this transaction after payment of IC Power's debt, loan taken from Israel Corp., one-time transaction related costs, management compensation, advisor fees, other expenses and taxes, etc.
Additionally, shareholders' of Kenon had authorized a capital reduction so that part of the sale proceeds from this transaction could be distributed to its shareholders. However, the Company has not disclosed whether it will take such a decision, and if it does agree to do so, it has not disclosed the exact amount or the time for the same.
Details of the Sale Agreement
Inkia Energy had agreed to sell its Latin American and Caribbean businesses to I Squared Capital on November 26, 2017, in a deal valued over $1.177 billion. The transaction was only for Inkia Energy's Latin American businesses and did not include the IC Power's Israeli asset OPC. The Board of the Company had approved the deal and Kenon had scheduled an extraordinary general meeting (EGM) of its shareholders on December 19, 2017. The EGM was organized to get shareholders' approval for this transaction.
The transaction is in-line with Kenon's strategy of increasing shareholders’ value including steps like monetization of its businesses.
About Kenon Holdings Ltd
Singapore-based Kenon is a holding Company that operates dynamic, primarily growth-oriented, businesses. The main businesses of the holding Company include, IC Power, a wholly-owned power generation company, and Qoros, a China-based automotive company, where it owns 50% equity interest. Other non-primary interests include a 32% stake in ZIM, a global container shipping Company, and in Primus, an innovative developer of an alternative fuel technology. Although the main aim of the holding company is to help its subsidiaries and investee companies to develop and grow, it also is committed to realize the value for its shareholders. As a part of this strategy, Kenon provides is shareholders’ direct access to its businesses, which may include spin-offs, listings, offerings, distributionsc or monetization of its businesses.
Stock Performance Snapshot
January 02, 2018 - At Tuesday’s closing bell, Kenon’s stock slightly rose 0.65%, ending the trading session at $21.79.
Volume traded for the day: 2.00 thousand shares.
Stock performance in the last month – up 7.92%; previous three-month period – up 30.09%; past twelve-month period – up 102.88%; and year-to-date - up 0.65%
After yesterday’s close, Kenon’s market cap was at $1.13 billion.
The stock is part of the Utilities sector, categorized under the Foreign Utilities industry.
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