Israel Corporation Approves Spin-Off of Kenon

Kenon Holdings Ltd. (NYSE, TASE: KEN), announced that the shareholders of Israel Corporation Ltd.

, its board of directors and two committees of the board, have approved the spin-off of Kenon to Israel Corporation shareholders, and the expected closing date is January 7, 2015. The board of directors of Israel Corporation declared a pro rata dividend of the outstanding shares of Kenon, which will result in the legal and structural separation of the two companies. Kenon's primary assets include IC Power, a wholly owned power generation company with more than 3,800 MW of operating assets and assets under construction in growing markets including ten Latin American countries and the Caribbean and in Israel. IC Power has a pipeline of over 1,100 MW of new projects under construction scheduled to be completed by year end 2016. Kenon's other primary asset is Qoros Automotive, an emerging Chinese automaker. Its other assets include interests in Tower Semiconductor, a speciality foundry manufacturer of analogue integrated circuits, ZIM, a global container shipping company, and two smaller renewable energy companies. Kenon's strategy is to support the growth and development of its various businesses. Following the growth and development of its businesses, Kenon intends to unlock value by providing its shareholders with direct access to these businesses. In addition, Kenon will follow disciplined capital allocation principles, including refraining from investing in new companies outside its current businesses. All Israel Corporation shareholders as of the record date, January 9, 2015, will be entitled to receive for each IC share held, 7 Kenon shares, together with US$26.22557 in cash, as a dividend. Kenon's shares will be distributed through the clearing systems of the Tel Aviv Stock Exchange Ltd. (TASE) on or about January 9, 2015. Kenon's shares will begin trading in the U.S. on the New York Stock Exchange (NYSE) on or about January 6, 2015. The NYSE has indicated that Kenon's shares will trade on a "when-issued basis" for an initial period. During this period, Kenon's shares will trade under the ticker symbol of 'KEN WI'. Regular-way trading on the NYSE will commence at a later date to be determined by the NYSE. At this stage, the ticker symbol will be changed to 'KEN'. Kenon's shares will commence trading in Israel on the TASE, on or about January 11, 2015. In connection with the spin-off, Kenon has filed a Registration Statement on Form 20-F ("Registration Statement") with the U.S. Securities and Exchange Commission ("SEC"), which contains information about Kenon and its businesses and details regarding the distribution of Kenon's shares, as well as certain tax consequences and considerations and other important information. The Registration Statement is available on the SEC's website at www.sec.gov