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.