Kenon agrees $450 million Vicinity Energy investment

• Kenon Holdings (NYSE:KEN) agreed to acquire a 25% indirect equity interest in U.S. district heating and cooling business Vicinity District Energy.
• The transaction values 100% of Vicinity at $2.92 billion, with Kenon’s maximum cash obligation estimated at approximately $450 million.
• Kenon expects the transaction to close in Q2 2027, subject to regulatory approvals and other closing conditions.

Kenon Holdings (NYSE:KEN) agreed to acquire a 25% indirect equity interest in Vicinity District Energy, a U.S. district heating and cooling business, through a transaction valuing 100% of the company at $2.92 billion.

The investment will be made through a buyer owned by Kenon and Harrison Street Asset Management funds, which will acquire approximately 60% to 100% of Vicinity’s holding company from an entity related to Antin Infrastructure Partners.

Kenon’s maximum cash obligation is approximately $450 million, funded through cash on hand and available liquidity, while lenders committed up to $1.4 billion for acquisition financing and future capital expenditures that will be non-recourse to Kenon and its partner.

Vicinity District Energy provides district energy services, including heating and cooling solutions, through centralized systems serving commercial and institutional customers in the United States.

Kenon expects the transaction to close in the second quarter of 2027, subject to regulatory approvals and other closing conditions, while its guarantee for certain termination fees and expenses is capped at $40.2 million.