Shareholders of Nigerian CDMA operator Starcomms have approved the re-organisation of the company’s share structure as part of the requirements for its acquisition by investment group Capcom Limited, reports local newspaper Leadership. Late last year Starcomms reached an agreement with Capcom, under which the latter would invest USD210 million in the Nigerian firm in return for a 90.5% stake. Capcom – a special purpose vehicle created for investing in Starcomms and related transactions – comprises a number of investors, including MBC, a private trust with a focus on investing in emerging markets, and Pan African Capital through its asset management division, PACAsset Management. As part of the agreement, Capcom aims to create a national broadband operator by acquiring the spectrum licence of MTS and the CDMA business of Multilinks, and it will provide USD98 million in cash to finance their integration with Starcomms, in a bid to improve its competitiveness in Nigeria’s overcrowded telecoms market. In return, Capcom will receive new Starcomms shares which will result in the group owning 90.5% of the operator’s restructured share capital, and as part of the overall transaction, both Helios Investment Partners and AMCON will acquire equity stakes in Starcomms derived from the Capcom shareholding on completion.
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