Kenon Holdings Ltd. (NYSE: KEN; TASE: KEN), controlled by Idan Ofer, has announced that Inkia Energy Limited, a wholly-owned subsidiary of IC Power Ltd., has entered into an agreement to sell all of its Latin American and Caribbean businesses for $1.18 billion cash, subject to adjustment for changes in working capital and debt before closing. The buyer, private equity firm I Squared Capital, which specializes in infrastructure and energy investments in Latin America, will pay an additional sum of approximately $192 million, representing Inkia Energy's cash in excess of $49.9 million. The buyer will also assume Inkia's $450 million of bonds, which were issued in November 2017.
Kenon says that the sale is part of its strategy to provide its shareholders with direct access to its businesses, including through monetization of its businesses. The transaction includes only the Lain American. IC Power's Israeli asset OPC Energy Ltd. is not being sold.
Following the sale, Kenon will remain with its 76% holding in OPC, a 32% stake in Zim Integrated Shipping Services Ltd., which released good third quarter results last week, and its stake in Chinese car venture Qoros, which is also in the process of being sold.
Kenon plans to sell the rest of its holdings in the next few years, or to distribute them as a dividend in kind to its shareholders, in effect liquidating the company.
Earlier this year, Kenon moved to float IC Power on the New York Stock Exchange at a valuation of $1.1 billion, including its activity in Israel (which was later floated separately on the Tel Aviv Stock Exchange), but withdrew from the move after failing to obtain the valuation it sought from US investors. Ultimately, the valuations Kenon obtained for IC Power and OPC were much higher than the putative issue price in New York.
Published by Globes [online], Israel business news - www.globes-online.com - on November 26, 2017
© Copyright of Globes Publisher Itonut (1983) Ltd. 2017