Kenon, Chery Sell 51% of Qoros Automotive for $1 Billion
The investor, who is related to China’s Baoneng Group, has committed to buying 300,000 cars from Qoros over the next three year
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Kenon announced the deal in a filing with U.S. Securities and Exchanges Commission, saying that China’s Ministry of Commerce has provided its approval.
As part of the deal, the investor has committed to spending $4.5 billion on the purchase of 300,000 vehicles from Qoros over three years. Qoros’ sales have so far reached 15,000 vehicles a year.
With the new investment, Kenon’s stake in Qoros has dropped to 24% and Chery’s to 25%.
The deal allows Kenon to sell its remaining position in Qoros for 3.12 billion yuan (currently worth $478 million) at a future date.