SINGAPORE, Dec. 21, 2017 /PRNewswire/ -- In June 2017, Kenon Holdings Ltd. (NYSE: KEN,
TASE: KEN) ("Kenon"), announced that Qoros Automobile
Co., Ltd. ("Qoros"), which is 50% owned by Kenon's
wholly-owned subsidiary Quantum 2007 (LLC) ("Quantum") and
50% by Wuhu Chery Automobile Investment Company Limited ("Wuhu
Chery"), entered into an investment agreement, pursuant to
which a China-based investor (the
"Investor") agreed to invest approximately RMB6.5 billion (approximately $977 million) in Qoros for a controlling interest
in Qoros, subject to certain conditions.
In order to move forward with this investment structure, Wuhu
Chery was required to conduct a public tender. The public tender
recently concluded, with the Investor, an entity related to the
Baoneng Group, announced as the winning bidder. Following the
tender, Quantum and the Investor entered into a sale and purchase
agreement with respect to a portion of Qoros shares owned by
Quantum.
The investment structure initially entails a sale of a portion
of the Qoros shares owned by the shareholders of Qoros (Quantum and
Wuhu Chery) to the Investor, followed by a capital increase to be
conducted by the shareholders of Qoros (including the Investor) in
proportion to the new shareholding structure. As part of this
capital increase, substantially all of the proceeds received by
Quantum and Wuhu Chery from the initial sale of Qoros shares to the
Investor will be reinvested in Qoros.
The investment agreement remains subject to a number of
conditions that must be satisfied by a certain date, some of which
are beyond the parties' control and which the parties may be unable
to satisfy. These conditions include regulatory approvals, consents
from lenders and further documentation, including entry into
additional agreements. Additional terms of the investment will be
disclosed upon further developments in the transaction.
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 the
investment agreement entered into with the Investor, including the
amount to be invested by the Investor, the acquisition of an
interest in Qoros from the shareholders of Qoros by the Investor,
and the capital increase, including the reinvestment of the
proceeds of the sale of the Qoros shares to the Investor. 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 the parties are unable to satisfy the
conditions to the investment agreement, that further agreements are
not executed in furtherance of this investment agreement, that the
Investor fails to purchase an interest in Qoros from its
shareholders, that the capital increase or other elements of the
transaction described in this release are not conducted as
contemplated, or at all, 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.
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SOURCE Kenon Holdings Ltd.