Kipco rejects US$3.2 billion offer for OSN stake

Kuwait Projects Company (Kipco) has reportedly rejected a US$3.2 billion (€2.4 billion) offer from an unnamed US private equity group for a majority stake in pay TV operator OSN.

The private equity group’s offer comprised US$2.4 billion in cash and a further UIS$800 million that would have been subject to certain conditions being met, for a stake of between 51% and 100% of the company.

Kipco owns a 60.5% majority stake in OSN with Saudi Arabia’s Mawarid Group holding the remainder.

Dubai-based Arqaam Capital last year valued the company at US$4.3 billion.

Kipco had earlier indicated that it planned to float OSN. The company hired Rothschild in 2013 to look into options for an IPO.

OSN reported earnings of KWD139.5 million (€367 million) in 2013. The company said last month that it had strengthened its subscriber base in Saudi Arabia, growing by 43% year-on-year and expanding its retail network, without giving specific figures.