TEL AVIV, Jan 9 (Reuters) - Israel’s Kenon Holdings Ltd 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, 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)
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