Benzinga | Apr 13, 2021 06:18AM EDT

Kenon Holdings Subsidiary OPC To Acquire 51% Interest In In Gnrgy Ltd For $20M

Kenon Holdings Ltd.'s (NYSE:KEN, TASE:KEN))))) ("Kenon") subsidiary OPC Energy Ltd. ("OPC") announced that on April 12, 2021 it signed an agreement to purchase an interest in Gnrgy Ltd. ("Gnrgy"), whose business focuses on e-mobility charging stations.

The acquisition is part of OPC's strategy to expand into new areas of energy production and the provision of advanced energy solutions to its customers including energy supply and the management of energy for electric vehicles.

Pursuant to the purchase agreement, OPC has agreed to acquire a 51% interest in Gnrgy for NIS 67 million (approximately $20 million) (the "Transaction"). The Transaction is expected to be completed in 2 stages over 11 months with the majority of the purchase price earmarked for funding of Gnrgy's business plan including repayment of existing related party debts.

Gnrgy's founder will retain the remaining interests in Gnrgy and enter into a shareholders' agreement with OPC, which will among other things give OPC an option to acquire a 100% interest in Gnrgy.

Completion of the Transaction is subject to certain conditions, including approval (or an exemption) from the Israel Competition Authority.

OPC has indicated that it intends to finance the Transaction from its own sources.

Gnrgy was established in Israel in 2008 and operates in the field of charging electric vehicles (e-mobility) and the installation of charging stations for electric vehicles.