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

DHL to invest millions of Euros across SSA in 2015

DHL plans to invest millions in upgrading its shipment handling systems and facilities in SSA this year. Read More

Ebenezer Asante to assume CEO role of MTN Ghana

Ebenezer Twum Asante will officially assume the position of Chief Executive Officer for MTN Ghana, effective 1st July, 2015. Read More

Nomanini scales West African footprint with Transaction Solutions partnership

South African-based portable Point of Sale (PoS) service provider Nomanini has signed an exclusive agreement with Transactions Solutions Ghana Limited to substantially scale numbers of its cloud-based PoS terminals in Ghana.  Read More

Online procurement system for East Africa goes live

Kenyan IT start-up M-Tenders Systems has created East Africa’s first live online procurement system, www.m-tenders.com. Read More

Customer experience starts with staff experience

Companies seeking to improve customer experience to boost business may be overlooking a critical component in the mix: staff, says new Interactive Intelligence research. Read More

MasterCard, Ecobank Group to accelerate e-payment in SSA

Ecobank, Africa’s largest bank by geographical reach, will roll out MasterCard payment solutions to millions of its customers in Africa. Read More

Travellers more tech savvy

78% of global travellers are using digital information while planning their trips; 66% resorting to digital sources for travel tips at the destination, says Visa. Read More

Standard Chartered appoints Chief Innovation Officer

Standard Chartered Bank says it has appointed Ms Anju Patwardhan as the Bank’s first Group Chief Innovation Officer, effective 1 July 2015.  Read More

Cameroon: a well-kept investment secret

The investment opportunities in Cameroon are wide open, believes Africa strategy advisor for Moore Stephens, Jeff Blackbeard, who recently met with Cameroonian Prime Minister Philémon Yang. Read More

Morpho targets African growth

Morpho, a leading supplier of biometric identification and security solutions, says it plans to aggressively capture the untapped markets in Africa. Read More

PRESS OFFICES

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

FEATURED STORY

IHS plans to inject fresh $500m to grow capacityIHS plans to inject fresh $500m to grow capacity

Mohammed Darwish, managing director of IHS Towers, says the firm will soon inject another $500million into the business after raising some $2.5billion to finance expansion drives. Darwish spoke with biztecafrica.com in Lagos.

IN DEPTH

As curtain falls on MDGs, what next?As curtain falls on MDGs, what next?

Dr. Bjorn Lomborg, president of the Copenhagen Consensus Centre, speaks to Biztechafrica about setting smart targets.