Starcomms to ‘redefine mobile broadband’
BUSINESS| Dec. 4, 2012, 8:58 a.m.
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.
MORE BUSINESS NEWS
MTN Nigeria gets indigenous Chief Financial OfficerMTN Nigeria has announced the appointment of Adekunle Awobodu as its new Chief Financial Officer (CFO). Read More
Networks Unlimited partners with RubrikNetworks Unlimited has been named as sole distributor of Rubrik converged data management solutions in Africa. Read More
Payroll fraud: a serious threat to your business’s sustainabilityPayroll is one of the largest expenses for Small & Medium Businesses and larger enterprises in West Africa, yet many organisations are neglecting the importance of managing the risk of fraud in this area of the business. Read More
Nigeria goes live with Bsystems Collateral Registry SystemNigeria has become the fourth country to roll onto the Collateral Registry System developed by Ghanaian technology solution firm Bsystems. Read More
Arbitration to support justice, says GlobacomGlobacom Nigeria says its support of the International Chamber of Commerce, (ICC) Africa Regional Arbitration Conference in Lagos is a demonstration of its belief that arbitration would further enhance the cause of justice in the country. Read More
Dimension Data names new group CEODimension Data has announced the appointment of Jason Goodall as Group Chief Executive Officer, as Brett Dawson, current CEO, steps down after 12 years. Read More
Solar developer Phanes Group opens African head office in SAInternational solar energy developer, investment manager and asset manager Phanes Group has launched an office in Johannesburg, South Africa – its first African office. Read More
We’re insulated from Nigeria’s forex problem, says IHSIHS Towers says it has not been hard hit by ongoing foreign exchange (forex) squeeze in Nigeria because it is a foreign direct investment (FDI) vehicle into the country. Read More
8 Lessons for entrepreneurs who want to conquer the worldSage Foundation Chairman Ivan Epstein outlines his top advice for entrepreneurs. Read More
TMT Finance Africa in Lagos 2016 to be launched in partnership with IHS TowersTMT Finance and IHS Towers have announced the launch of the inaugural TMT Finance Africa in Lagos, Nigeria conference on September 20, 2016. Read More
FEATURED STORYGovernment should encourage youths in ICT early
Youths should be given more encouragement to develop their ICT skills, an 11-year-old app developer told Kokumo Goodie.
BEST READ NEWS
IN DEPTHIBM Opens First Cloud Data Centre in South Africa
IBM is opening a new IBM Cloud Data Centre in Johannesburg, South Africa. The new cloud center is the result of a close collaboration with Gijima and Vodacom and is designed to support cloud adoption and customer demand across the continent.