Categories Consumer, Earnings, Retail

Kenon sells half of its stake in Qoros Automobile Co

Israeli businessman Idan Ofer owned Kenon Holdings (KEN) announced that half of its remaining stake in Qoros Automobile Co for about $227 million. The transaction cuts Kenon’s ownership from 24% to 12% of Qoros.

A year ago, in January 2018, Kenon had declared that its investment in Qoros was cut to 24%, after China-based Baoneng Group acquired a majority stake in the car company (51%).

Following the completion of the latest deal, Kenon will hold 12% in Qoros, while Chery will own 25% and Baoneng 63%.

DEAL NEWS: Kenon sells stake in Qoros
The Qoros 3 City SUV (SOURCE: Qoros Official Media)

“Kenon retains its rights under the put option over its remaining 12% stake in Qoros as described in the January 6-K. Kenon will evaluate its options with respect to its remaining stake in Qoros, including whether or not to exercise its rights under the put option, in accordance with its strategy and other relevant factors relating to its interest in Qoros. In addition, Kenon may in the future sell further portions or all of its remaining stake in Qoros to the Majority Shareholder or otherwise,” said Kenon in a statement.

Ever since last year, Qoros has been in the news for the wrong reasons. While back in January 2018, Israeli papers said that “Chinese tycoon bails out Israeli investor in Qoros carmaker” hinting that Kenon couldn’t hold onto Qoros.

Then in November, Qoros Auto SVP Cai Jianjun left the firm. He had joined as senior vice president of Qoros Auto in March.

However, all is not gloomy at the auto company. In September, Qoros Auto announced its plan to roll out 21 new models by 2022 in a rather confident press conference.

According to the plan, 2019 will see a number of models — SUVs, cars, MPVs and corresponding NEV versions. This year, the company is expected to roll out two fuel-burning compact SUV models, one battery electric vehicle (BEV) car and one BEV SUV model.

 

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