Starcomms to ‘redefine mobile broadband’

BUSINESS

-
Image: By BiztechAfrica
Starcomms to ‘redefine mobile broadband’

By Kokumo Goodie, Lagos, Nigeria

Nigeria’s ailing code division multiple access (CDMA) operator, Starcomms, says it will redefine mobile broadband data services in the country with the injection of funds by Capcom, a special vehicle set up to buy the assets and liabilities of the firm and that of MTS and Multilinks. 

Speaking during an interactive session with the media in Lagos, Chief Executive Officer, Capcon International, Ademola Elesho, said the firm has concluded arrangements to inject a combination of cash and assets worth USD210 million into Starcomms as part of efforts to buy controlling shares in the ailing telecom firm, adding that the firm has opportunities to bounce back and play significant role in the market.

According to him, the ailing telco will be made to atract more highly profitable data subscription in the short term through the launch of 4G mobile broadband or long term evolution (LTE) technology, adding that the availability of 20 MegaHertZ (MHZ) contiguous spectrum 1900MHz range, will allow the telco to do data very well.

Elesho said the firm is going to raise the funds through equity and assets to seal the transactions.

“The transaction will be effected through a Scheme of Arrangements to be followed by a Private Placement and a Rights Issue. The  scheme will involve the cancellation of  N3,448, 646, 872 in the company’s share capital comprising 6, 897, 293, 744 ordinary shares of 50kobo each, and the subsequent issuing of 662, 500,000 new, fully paid up ordinary shares to Camcon constituting 90.5 per cent of the post scheme-organized issue share capital,” he said.

Elesho said the scheme is subject to the approval of shareholders at the Court -Ordered Annual General Meeting slated for December 28, 2012, the approval of the NCC,

Also, the interim Managing Director, Starcomms Plc, Olusola Oladokun, said various litigations facing the company had been sorted out to enable the transactions scale through. Oladokun said Starcomms has suffered a 'liquidity position' in recent times, adding that the development has resulted in its current debt position of N15 billion.

“The company has defaulted in debt service with some of its creditors. We hope to continue to service the debt, if the Capcom deal scales through,” he said.

 



Share the News

Get Daily Newsletter

comments powered by Disqus

MORE BUSINESS NEWS

Further African expansion for Phoenix

Phoenix Distribution, a leading broad-based distributor on the African continent, has expanded its office in Nairobi, Kenya, in a move to better serve its partners in East Africa.  Read More

Garmin seeks business partners in West Africa

Garmin is hosting a trade delegation in Accra, Ghana from the 12th to 16th May 2014. Read More

Orange Telkom not closing Kenya business: Ghossein

Speculation that Orange Telkom Kenya would be closing its Kenyan operations has been put to rest. Read More

Dimension Data enters Ghana’s IT market

Dimension Data, a South Africa-based ICT solutions and services provider, has announced its entry into the Ghanaian ICT market. Read More

Glo rewards business partners

Globacom has showered 53 high-end vehicles and other prizes on its trade partners responsible for distributing Globacom’s products and services across Nigeria. Read More

Worldwide PC shipments decline

Worldwide PC shipments totalled 76.6 million units in the first quarter of 2014, a 1.7 per cent decline from the first quarter of 2013, according to preliminary results by Gartner Read More

Axis Solutions becomes first VMware Premier Partner in the WECA Region

Axis Solutions, a Pan-African ICT solutions provider headquartered in Harare Zimbabwe, is the first VMware partner to become a Premier Partner within the WECA region.   Read More

Nigeria to spur Oracle's African drive

Oracle Corporation has assured that Nigeria will be the centerpiece of its developmental drive in Africa. Read More

Pivot East nurtures promising startups

Pivot East, an innovative mobile web competition geared towards nurturing the growing ICT talent in East Africa, is providing an ideal platform to grow mobile web startups. Read More

Phoenix Distribution unveils new, interactive website

Phoenix Distribution, currently the leading value added software and CES distributor across the African continent, has redesigned its website, making it easier to use for clients and partners alike. Read More

PRESS OFFICES

Sage ERP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionSage HR AfricaMTN Business

FEATURED STORY

Kenyan bloggers get their act togetherKenyan bloggers get their act together

Bloggers seem to be gaining a formidable position in Kenya’s online media fraternity, reports Semaj Itosno.

IN DEPTH

E-waste threatens Ghana’s beachesE-waste threatens Ghana’s beaches

Many beaches in Ghana, already stressed by pollution and poor maintenance, are now facing a new threat: e-waste.

COMPANY NEWS

Further African expansion for Phoenix

Phoenix Distribution, a leading broad-based distributor on the African continent, has expanded its office in Nairobi, Kenya, in a move to better serve its partners in East ...