AXA Private Equity To Acquire 47% Of KOS, IPO Canceled

Italian holding CIR SpA (CIR.MI) said Thursday that AXA Private Equity will buy a stake in its healthcare unit KOS of 46.7% over three years, with a total financial commitment of EUR150 million.

The deal, which was approved Thursday by the boards of CIR and KOS, will take place in various steps and will give a "significant boost" to KOS's capital to fund its future development plans, CIR said.

Under the agreement, France's AXA Private Equity will buy the majority of the shares currently owned by the minority shareholders of KOS, including the entire stakes held by Morgan Stanley (MS) and Wise, for a total amount of EUR92.5 million. AXA Private Equity will also subscribe to a dedicated capital increase in KOS of EUR20 million.

The agreement also includes that, over the next three years, AXA Private Equity will make further dedicated capital increases, in one or more stages.

The total financial commitment of AXA Private Equity in the entire deal will rise to EUR150 million, with a final shareholding interest of 46.7% in KOS, said CIR.

CIR will keep all the shares it currently owns in KOS and will remain majority shareholder with a stake of just over 51%, once the deal is completed.

As a consequence of the move, KOS has canceled its previous IPO plans, but said it continued to consider a listing on the stock exchange as a possible option in the medium-long term.

-By Giada Zampano, Dow Jones Newswires; [phone]; [e-mail]