Kenon Holdings announced updates with respect to its holding of ordinary shares of ZIM Integrated Shipping Services Ltd. (“ZIM”). In June 2024, Kenon announced that it had sold 5 million shares in ZIM and had entered into a collar transaction with a bank relating to an additional 5 million ZIM shares owned by Kenon. Following the sale of ZIM shares described above, Kenon held 19.8 million shares of ZIM representing 16.5% of the outstanding shares of ZIM, including 5 million shares (representing 4.2% of ZIM’s shares) subject to the Collar.
Kenon announced that intends to sell additional shares in ZIM and/or enter into derivative transactions with respect to up to all of its remaining stake in ZIM (excluding the shares that had been covered by the Collar). Such sales are intended to be made in transactions that comply with Rule 144 under the Securities Act of 1933.
Kenon also announced that it has terminated the Collar and entered into a cash settled capped call transaction with respect to 5 million shares of ZIM. The capped call transaction will allow Kenon to retain exposure to potential upside in ZIM’s shares above the call price, up to the cap, and will be cash settled. As a result of the termination of the Collar, the 5 million shares that were subject to the Collar, and which had been pledged to the bank with which Kenon entered into the Collar, will be sold to the bank and Kenon will receive cash proceeds from the ZIM shares, minus the cost of the cash settled capped call transaction, of approximately $93 million.