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

Togo women get down to ICT training, business

Women and girls came in numbers last week to attend the three-day Female TechCamp 2015 hosted in the capital Lomé. Read More

MTN Group Sustainability Report released

MTN Group’s efforts to advance social development in its markets through the integration of sustainable business practices into day-to-day activities, is yielding positive outcomes, the company’s Sustainability Report shows. Read More

Senegal seeking ICT investment opportunities in Mauritania

Mauritania, an impoverished nation in West Africa, is a largely untapped ICT market, according to many Senegalese industry players. A group of ICT companies from Senegal recently visited Mauritania to find out if this statement is indeed true. Read More

Schneider Electric releases the first survey on counterfeit electrical products in Africa

Counterfeiting of most common electrical products is widely spread in all African countries, representing 40% to 80% of their markets, says a new survey. Read More

MTN Business launches services that will host SMEs securely on its domain

MTN Business has launched Bring Your Business Online, a platform that gives small and medium-sized businesses (SME) increased visibility by providing online presence on the MTN managed domain for less than R20 a month. Read More

Job fears in Senegal as Tigo outsources network management

People working for Tigo Senegal are worried about their jobs after the mobile operator signed an agreement that handed over the management of its network to the Swedish telecom giant Ericsson. Read More

JUMIA Côte d’Ivoire expands its operations

JUMIA has opened six new hubs in Cote d’Ivoire in the cities of Yamoussoukro, Bouaké, San Pedro, Daloa, Gagnoa, and Korogho.  Read More

US firm Actifio drives into African markets

US based company Actifio, which specialises in copy data virtualisation, has revealed its plans for the expansion of its footprint in the African markets. Read More

Richard Edet appointed Country Senior Officer for Alcatel-Lucent Nigeria

Alcatel-Lucent has announced the appointment of Richard Edet, effective today, as Country Senior Officer and managing director for Nigeria. Read More

Africans to surge up the ranks of ultra-high-net-worth individuals

The number of ultra-high net worth individuals – those with at least $30 million in assets – in Africa will increase by a staggering 59% over the next 10 years, stronger than the 34% projected global growth. Read More

PRESS OFFICES

Sage ERP AfricaSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoiceMicrosoft 4Afrika

FEATURED STORY

2bn priced out of internet access2bn priced out of internet access

A new report from the Alliance for Affordable Internet shows that the price of broadband remains prohibitive for billions in developing and emerging countries, with women and rural dwellers hardest hit.

IN DEPTH

Villagers get solar training at Barefoot College Villagers get solar training at Barefoot College

The Botswana Human Resource Development Council (HRDC) has seconded seven semi-illiterate mostly Ngwatle villagers for a six month solar electrification training course at the famed Barefoot College in India.