BUSINESS TECHNOLOGY MEDIA FOR AFRICA

Starcomms shareholders approve Capcom investment

Starcomms shareholders approve Capcom investment
Gareth van Zyl
By Gareth van Zyl, Editor, ITWeb Africa
04 Jan 2013

Shareholders of Nigerian CDMA operator Starcomms have approved the reorganisation of the firm’s share structure to allow investment group Capcom to acquire the company.

According to a press statement from Starcomms, the CDMA operator has received support from almost all of its shareholders for Capcom to invest $210 million in the company.

The deal is now subject to regulatory approval from the Nigerian Communications Commission (NCC), Nigerian Stock Exchange (NSE) and Securities and Exchamge Commission (SEC).

IT & Telecom Digest reported last year that three operators - Starcomms, Multilinks and MTS - were setting up a merger that would see investors inject just over $200 million to create a new mobile operating capable of offering 4G services.

The group of investors, who had acquired Multi-Links and MTS, joined Starcomms to the mix to form Capcom, according IT & Telecom Digest.

The publication further said that a Gibraltar-registered trust called MBC is planned to own 53% of CAPCOM, while African investment firm Helios Investment Partners 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%.

Nigeria’s telco market has been booming, as the the West African country is the continent’s largest mobile market with just over 100 million subscribers 2012, according to Informa Telecoms & Media research.

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