Kenon (NYSE: KEN) hedges 6M OPC Energy shares with three-year collar

Rhea-AI Filing Summary

Kenon Holdings Ltd. has entered into a collar transaction with an investment bank covering 6,000,000 ordinary shares of OPC Energy Ltd., representing approximately 2% of OPC’s outstanding shares held by Kenon.

Before this deal, Kenon owned about 142,000,000 OPC shares, or roughly 46% of the company. The collar combines a purchased put option and a sold call option set around a reference price equal to the U.S. dollar value of NIS 124, giving Kenon downside protection while preserving upside up to the call strike.

The three-year collar can be settled in cash or OPC shares at Kenon’s election, requires no premium payment to the counterparty, and uses the 6,000,000 shares as collateral. It also provides a potential source of liquidity, as Kenon may in certain circumstances borrow against the collar under its terms.

Insights

Capital markets & derivatives analyst

Kenon hedges 6M OPC shares, trading some upside for protection and funding flexibility.

Kenon is using a three-year collar on 6,000,000 OPC Energy shares to manage risk and liquidity on a small portion of its 142,000,000-share position. The structure pairs a purchased put with a higher-strike sold call around a reference price of NIS 124.

This design limits downside on the collar shares while capping upside above the call strike. Kenon pays no upfront premium and can elect cash or share settlement at maturity. The transferred shares serve as collateral, and the collar permits borrowing against the position under specified conditions.

The transaction affects only about 2% of OPC’s outstanding shares, so Kenon retains substantial uncollared exposure. Actual economic impact will depend on OPC’s share price over the three-year term and how actively Kenon uses the embedded borrowing feature.

Key Figures

Collar size: 6,000,000 shares Collared stake share: approximately 2% Kenon OPC holdings: approximately 142,000,000 shares +3 more

6 metrics

Collar size 6,000,000 shares OPC Energy ordinary shares subject to collar

Collared stake share approximately 2% Portion of OPC’s outstanding shares in collar

Kenon OPC holdings approximately 142,000,000 shares OPC shares held by Kenon before collar

Kenon ownership in OPC approximately 46% Kenon’s stake in OPC outstanding shares

Reference price NIS 124 (USD equivalent) Reference for determining collar strike prices

Collar term 3 years Duration of the collar transaction

Key Terms

collar transaction, put option, call option, Reference Price, +2 more

6 terms

collar transaction financial

"Kenon Holdings Ltd. announces that it has entered into a collar transaction"

A collar transaction is a protective strategy where a shareholder pairs insurance against a stock’s fall with a cap on its gains by buying a downside guarantee and selling an upside option. Think of it like putting a floor and a ceiling on the stock’s future price: it limits losses while also limiting potential profit, which matters to investors because it reduces volatility and signals planned downside protection or constrained upside from future share sales.

put option financial

"The Collar Transaction involves the purchase of a put option from the Collar Counterparty"

A put option is a financial contract that gives its holder the right, but not the obligation, to sell a specified quantity of a stock or other asset at a set price within a defined time. Think of it like insurance on an investment—if the asset’s market price falls, the put lets an investor lock in a higher sale price or profit from the decline, helping limit losses or speculate on downward moves.

call option financial

"and the sale of a call option with a higher strike price to the Collar Counterparty"

A call option is a contract that gives its buyer the right, but not the obligation, to buy a specific number of shares at a predetermined price within a set time period. Think of it as a refundable reservation to buy an item later at today’s price: you pay a fee up front and can profit if the stock rises, while your downside is limited to that fee; investors use calls to gain leverage, speculate on upside, or hedge positions without owning the shares.

Reference Price financial

"with a reference price, for purposes of determining the strike prices, of the U.S. Dollar equivalent of NIS 124 (the “Reference Price”)"

forward-looking statements regulatory

"This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

Securities Act of 1933 regulatory

"The Collar Shares have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States"

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Form 6-K: How Foreign Companies Report to the SEC →

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

May 28, 2026

Commission File Number 001-36761

Kenon Holdings Ltd.

1 Temasek Avenue #37-02B
Millenia Tower
Singapore 039192
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒          Form 40-F ☐

EXHIBIT 99.1 TO THIS REPORT ON FORM 6-K IS INCORPORATED BY REFERENCE IN THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-201716) OF KENON HOLDINGS LTD. AND IN THE PROSPECTUSES RELATING TO SUCH REGISTRATION STATEMENT.

Exhibits

99.1 Press Release, dated May 28, 2026: Kenon Holdings Ltd. Announces Collar Transaction relating to Approximately 2% of the Shares in OPC Energy Ltd.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	KENON HOLDINGS LTD.
Date: May 28, 2026	By:	/s/ Robert L. Rosen
		Name: Robert L. Rosen
		Title: Chief Executive Officer

Exhibit 99.1

Kenon Holdings Ltd. Announces Collar Transaction relating to Approximately 2% of the

Shares in OPC Energy Ltd.

Singapore, May 28, 2026. Kenon Holdings Ltd. (NYSE: KEN, TASE: KEN) (“Kenon”) announces that it has entered into a collar transaction (the “Collar Transaction”) with an investment bank (the “Collar Counterparty”) relating to 6,000,000 ordinary shares of OPC Energy Ltd. (“OPC”), representing approximately 2% of OPC’s outstanding shares, owned by Kenon.

The Collar Transaction enhances Kenon’s financial flexibility: preserving a significant amount of the upside of the shares through the transaction while limiting downside; while initially unfunded, allowing Kenon to obtain attractive financing; no obligation to pay any premium or fee to the Collar Counterparty in consideration of entering into the Collar Transaction; and may be settled in cash or shares, at Kenon’s election.

Prior to the Collar Transaction, Kenon held approximately 142,000,000 shares in OPC, representing approximately 46% of OPC’s outstanding shares.

The Collar Transaction involves the purchase of a put option from the Collar Counterparty and the sale of a call option with a higher strike price to the Collar Counterparty, with a reference price, for purposes of determining the strike prices, of the U.S. Dollar equivalent of NIS 124 (the “Reference Price”). Kenon is not obliged to pay any premium or fee to the Collar Counterparty in consideration of entering into the Collar Transaction. The Collar Transaction has a 3-year term, with settlement either in cash or, at Kenon’s election, OPC shares.  Kenon will transfer the Collar Shares as collateral to the Collar Counterparty in connection with the Collar Transaction.  Under the terms of the Collar Transaction, Kenon will not receive proceeds unless and until the options are exercised at maturity, except pursuant to the borrowing election described below. According to the terms of the Collar Transaction, by default the transferred shares should be returned to Kenon in installments, on several settlement dates specified in the terms of the Collar Transaction, after approximately 2.5 years until 3.5 years following inception, all subject to the terms of the Collar Transaction (which also include provisions for, among other things, early termination of the Collar Transaction, in whole or in part, as well as the making of adjustments to terms of the Collar Transaction, the manner in which settlement is being carried out, or the manner of its termination under certain circumstances).

The Collar Transaction provides a potential source of liquidity to Kenon as the Collar Transaction allows Kenon, in certain circumstances, to elect to borrow against the Collar Transaction under the terms thereof.  The Collar Transaction also allows Kenon to retain exposure to potential upside in the Collar Shares up to the call strike price, while limiting the impact of potential decline in the share price with respect to the Collar Shares.

This press release does not constitute an offer to sell, or the solicitation of an offer to buy, securities and does not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Caution Concerning Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include statements with respect to the Collar Transaction and other non-historical statements. These forward-looking statements are based on current expectations or beliefs, and are subject to uncertainty and changes in circumstances. These forward-looking statements are subject to a number of risks and uncertainties, which could cause the actual results to differ materially from those indicated in these forward-looking statements. Such risks include the risks related to the Collar Transaction, including risks relating to future trading prices of OPC shares and impact on the outcome of the Collar Transaction and amounts that Kenon may be able to borrow in connection with the Collar Transaction and other risks including those set forth under the heading “Risk Factors” in Kenon’s most recent Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission. Except as required by law, Kenon undertakes no obligation to update these forward-looking statements, whether as a result of new information, future events, or otherwise.

The Collar Shares have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements of that act.

FAQ

What collar transaction did Kenon (KEN) announce with respect to OPC Energy?

Kenon entered into a three-year collar transaction on 6,000,000 OPC Energy ordinary shares, about 2% of OPC’s outstanding shares. The collar pairs a purchased put and a sold call, providing downside protection while preserving upside up to the call strike price.

How large is Kenon’s overall stake in OPC Energy after the collar transaction?

Kenon reports holding approximately 142,000,000 OPC Energy shares, representing about 46% of OPC’s outstanding shares. The collar only covers 6,000,000 of these shares, so the majority of Kenon’s OPC position remains outside the collar structure and fully exposed to market movements.

How does the Kenon (KEN) OPC collar transaction affect liquidity and financing?

The collar provides a potential source of liquidity by allowing Kenon, in certain circumstances, to borrow against the transaction. Kenon does not receive proceeds until options are exercised at maturity, except under this borrowing feature, and it is not required to pay any premium to enter the collar.

What are the key terms of Kenon’s collar on OPC Energy shares?

The collar uses a reference price equal to the U.S. dollar equivalent of NIS 124 to set put and call strikes. It has a three-year term, can be settled in cash or OPC shares at Kenon’s election, and uses the 6,000,000 OPC shares as collateral with staged share return provisions.

Does the Kenon OPC collar transaction change ownership of the underlying shares?

Kenon transfers the 6,000,000 OPC shares as collateral to the investment bank counterparty, but the terms provide for those shares to be returned in installments starting about 2.5 years after inception. The economic outcome depends on the options’ settlement at maturity.

Filing Exhibits & Attachments

1 document

Press Releases

• EX-99.1 EXHIBIT 99.1 8.9 KB