Kenon Announces Updates With Respect to its Interest in OPC Energy

SINGAPORE, March 30, 2018

OPC operates and develops power facilities in Israel. In April 2017, OPC entered into agreements (including an option agreement) for the acquisition of 95% of the shares of Tzomet Energy Ltd., which holds the rights to develop a natural gas-fired power station in Israel with capacity of approximately 396 MW, for total consideration of $23 million, subject to adjustment. In August 2017, the Israel Electricity Authority (the "EA") received a letter from the Israel Concentration Committee stating that it believed that, for reasons of broad economy concentration (i.e. taking into account businesses owned by related entities of Kenon's controlling shareholder), OPC should not be granted a contingent license for the construction of the planned facility. In March 2018, OPC completed the acquisition of 95% of the shares of Tzomet Energy, although Tzomet still requires (among other requirements) a contingent license from the EA to proceed with construction of the planned facility.

In view of the above, Kenon is considering its options with respect to its ownership interest in OPC, including a potential sale of its interest in OPC in whole or in part. Such a sale, if agreed and consummated, would be made consistent with Kenon's strategy to realize the value of its businesses for its shareholders, which may include monetization of its businesses. There is no assurance that Kenon will proceed with any such sale or what the terms of such a sale may be, and any sale may require consents.

Such a sale, if agreed and consummated would be subject to "Lock up" regulations of the Tel Aviv Stock Exchange.

About Kenon 

Kenon is a holding company that operates dynamic, primarily growth-oriented businesses. The companies it owns, in whole or in part, are at various stages of development, ranging from established, cash-generating businesses to early stage development companies. Kenon's businesses consist of:

• OPC Energy (76% interest) – a leading owner, developer and operator of power generation facilities in the Israeli power market;
• Qoros (24% interest) – a China-based automotive company;
• ZIM (32% interest) – an international shipping company; and
• Primus Green Energy, Inc. (91% interest) – an early stage developer of alternative fuel technology.
• Kenon remains committed to its strategy to realize the value of its businesses for its shareholders. In connection with this strategy, Kenon may provide its shareholders with direct access to its businesses, which may include spin-offs, listings, offerings, distributions or monetization of its businesses. Kenon is actively exploring various ways to materialize this strategy in a rational and expeditious manner. For further information on Kenon's businesses and strategy, see Kenon's publicly available filings, which can be found on the SEC's website at www.sec.gov. Please also see http://www.kenon-holdings.com for additional information.

Caution Concerning Forward-Looking Statements