Investor group Capcom has secured a US$62m loan facility with African Import-Export Bank to help finance its US$210m acquisition of a 90.5% stake in Nigerian telco Starcomms.
Capcom agreed last year to the deal, intending to merge Starcomms with…
Investor group Capcom has secured a US$62m loan facility with African Import-Export Bank to help finance its US$210m acquisition of a 90.5% stake in Nigerian telco Starcomms.
Capcom agreed last year to the deal, intending to merge Starcomms with already-acquired local mobile units Multi-Links and MTS Wireless. Under the terms of the agreement, Capcom will invest US$210m in Starcomms, specifically US$98m cash and spectrum valued at US$112m.
A Starcomms spokesperson said the loan will be used to fund this cash component.
Neither Capcom nor African Import-Export Bank was immediately available to provide details of the loan.
Starcomms shareholders approved Capcom’s proposed acquisition at their AGM last month, however the deal is still subject to the approval of the Securities and Exchange Commission (SEC).
