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
The Tech Revolution: Sage Sets out the Vision for African BusinessesSage, a market leader in cloud accounting software used its global Sage Summit 2016, held this week in Chicago, to outline its strong commitment to future technologies, with a focus on new and existing initiatives that power business growth. Read More
Francistown Barclays gets cardlessCardless cash deposits have been launched in Francistown. Read More
Business incubator to boost 200 Zimbabwean entrepreneurs200 would-be Zimbabwean entrepreneurs are set to benefit from business training and support, thanks to a business development programme to be launched by business incubation specialist KBA Africa. Read More
Union gives Globacom 14 days to reinstate 54 sacked workersThe Private Telecoms & Communications Senior Staff Association of Nigeria (PTECSSAN) has urged Globacom to reinstate the workers it allegedly sacked from its service. Read More
British envoy promises more investors at Rack CentreMr Paul Arkwright, British High Commissioner to Nigeria, has promised to do his utmost to encourage more British companies to do business with their Nigerian Counterparts. Read More
UBA, Mastercard in pan-African partnershipUBA and Mastercard have announced a five year deal across 19 markets focused on driving financial inclusion in Africa. Read More
MTN Business partners with the National Gazelles to boost SMEs marketMTN Business today announced a new drive to help support the growth of small and medium enterprises (SMEs) and contribute to creating sustainable entities. Read More
Travelport appoints new Managing Director for AfricaTravelport has announced the appointment of Douglas Jewson as Travelport’s Managing Director for Africa. Read More
Brexit’s impact on AfricaThe short-term implications of Brexit for African economies will be mainly noticeable through market volatility, say Control Risks and NKC African Economics. Read More
Safaricom Blaze to take 2nd youth empowerment summit to ThikaSafaricom will this Friday, 8th July 2016, host the 2nd in a series of youth empowerment summits under its recently launched sub-brand, BLAZE. Read More
FEATURED STORYFirst-ever Africa Barclays Accelerator programme concludes
Ten fintech companies have concluded the first-ever Barclays Accelerator, powered by Techstars in Africa.
BEST READ NEWS
IN DEPTHEthical Hacking students can’t get a heck of a job
Botswana ethical hacking students report that they are failing to break into the local job market.
COMPANY NEWSThe Tech Revolution: Sage Sets out the Vision for African Businesses
Sage, a market leader in cloud accounting software used its global Sage Summit 2016, held this week in Chicago, to outline its strong commitment to future technologies, ...