The Nigerian Stock Exchange (NSE) has placed a suspension on all trade activity on shares of the only listed telco in that country Starcomms, according to a report from the West African country's This Day newspaper.
Starcomms’ suspension follows a revelation of a looming merger deal among the operator and two Code Division Multiple Access (CDMA) companies, namely Multilinks and MTS.
The NSE has therefore reportedly suspended Starcomms trading, until the deal is complete.
IT & Telecom Digest reported earlier this month that these three operators are in the final stages of setting up a merger that could see $200 million invested by core investors into a new firm capable of offering 4G services.
A group of investors, who have acquired Multi-Links and MTS, are in the final stages of acquiring Starcomms to form CAPCOM, according IT & Telecom Digest.
The publication further says a Gibraltar-registered trust called MBC is set to own 53% of CAPCOM, while African investment firm Helios Investment Partners Plc is to hold 11% of the company. The Asset Management Company of Nigeria (AMCON) is to have a 2% stake; while leasing financial institution Middle East Capital Group is to hold 25%.
The remaining shares are to be held by Kenya’s Oldonyo family, in the form of the ‘Oldonyo Laro Estate’ with 5%; Bridgehouse Capital Limited with 3% and private equity investors with 1%.
And IT & Telecom Digest further says it possesses deal documents stating that the investors have the backing of the the Nigerian Communications Commission (NCC) and the Nigerian Stock Exchange, as Starcomms is listed on the country’s bourse.
Moreover, the publication adds that shareholders of Starcomms have given their consent for the deal.
According to the deal document in the possesion of IT & Telecom Digest, Starcomms is to be recapitalised with $90 million in addition to an injection of $110 miilion worth of assets.
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