KIPCO readies OSN for IPO, or sale

Kuwait-based investment fund KIPCO, which owns a majority stake in Dubai’s pay-TV operator OSN, says that it sees “enormous potential” for continuing growth in subscribers, revenues and profits at OSN. A statement on May 25th from KIPCO reports that OSN’s net profits jumped an impressive 66 per cent, although did not convert this into a monetary figure.

KIPCO’s statement read: “In the case of OSN – an unlisted core asset of the Group – KIPCO sees enormous potential for continuing growth in the number of customers, revenue and profits based on the favorable demographics of OSN’s target base and its world-class customer propositions. The cumulative dividend potential of OSN over the next five years could reach around $1 billion. OSN is expected to distribute $100 million to its shareholders during 2015, subject to approvals.”

A year ago KIPCO said it planned to mount an IPO for OSN and a London stock market listing, but that plan came to nothing.  In August last year KIPCO reportedly received an offer to buy OSN from a New York-based private equity company, and a bid of $3.2 billion, but that also came to nothing.

KIPCO owns 60.5 per cent of OSN’s holding company, with the balance held by Saudi Arabia’s Mawarid Group.

You must be logged in to post a comment Login