Kenon, Chery sell 51 pct of China car venture Qoros for $1 bln
09/01/2018 08:17
TEL AVIV, Jan 9 (Reuters) - Israel's Kenon Holdings Ltd
KEN.N KEN.TA said on Tuesday a China-based investor related
to the Baoneng group has acquired 51 percent of its Qoros
Automobile joint venture after the deal obtained approval from
China's Ministry of Commerce.
The Baoneng-related investor paid 6.63 billion yuan ($1
billion) for the stake. As a result, Kenon's stake has fallen to
24 percent while Wuhu Chery Automobile Investment Co, a
subsidiary of Chery Automobile Co CHERY.UL , holds 25 percent.
Kenon has an option to sell its remaining stake in Qoros for
3.12 billion yuan and the investor has an option to increase its
stake to 67 percent.
Qoros will be required to repay outstanding shareholder
loans to Kenon and Chery in the amount of 944 million yuan.
In addition, the investor has committed that it, or its
affiliate, will purchase approximately 100,000 vehicles from
Qoros each year in the next three years.
($1 = 6.5061 Chinese yuan renminbi)
(Reporting by Tova Cohen, Editing by Ari Rabinovitch)
((tova.cohen@thomsonreuters.com; +972-9-899-0222; Reuters
Messaging: tova.cohen.thomsonreuters.com@reuters.net))
Keywords: KENON HOLDINGS CHERY AUTOMOBILE/CHINA