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KIPCO reclassifies investment in OSN to subsidiary

KIPCO reclassifies investment in OSN to subsidiary
KIPCO owns a 87.6% stake in OSN
KPROJ
KPROJ
-0.67% 149.00 -1.00

Mubasher: The Board of Directors of Kuwait Projects Holding (KIPCO) has reclassified the company’s investment in OSN to an investment in a subsidiary form a joint-venture (JV) classified as held for sale.

The new subsidiary will consolidate in 2020 starting from the date of exercise of control, according to a stock exchange filing on Sunday.

In Mid-March, KIPCO raised its stake in OSN to 87.6% from 60.5% through the participation in capital calls and an arbitration decision.

The transaction is likely to generate a provisional gain worth KWD 76 million. Moreover, the reclassification will result in a restatement of previous financial statements with total assets and equity rights being reduced by KWD 86 million as of 31 December 2019.

However, the final impact of the transaction will fully reflect on the interim financial statements for the coming period of 2020 following the auditor’s review.

In the fiscal year (FY) 2019, KIPCO logged net profits of KWD 30 million, up by 6% from KWD 28.27 million in the previous year.