Nigerian telco Starcomms is to receive US$210m from investor group Capcom in return for a 90.5% stake in the company, the operator announced to the Nigerian stock exchange today.
As part of the agreement, Capcom will merge the assets of mobile operators…
Nigerian telco Starcomms is to receive US$210m from investor group Capcom in return for a 90.5% stake in the company, the operator announced to the Nigerian stock exchange today.
As part of the agreement, Capcom will merge the assets of mobile operators Multilinks and MTS and provide US$98m to finance their integration.
As TelecomFinance reported earlier this month, the three operators had applied for regulatory approval to consolidate, so they could better compete in the crowded Nigerian market.
The transaction is subject to shareholder approval and regulatory approvals. Canaccord Genuity Hawkpoint and Stanbic IBTC advised Starcomms on the transaction.
“The proposal from Capcom will enable Starcomms to reduce its high level of borrowings and improve its low liquidity position,” said Starcomms’ interim CEO, Olusola Oladokun in the announcement. “Given the significant challenges the business has faced over the last two years, Capcom’s investment will facilitate a strategic turnaround, improve the competitive position in the market and place the company on a growth path for the future.”