Nigerian CDMA operator Starcomms agreed a capital injection from Capcom worth USD 210 million in cash and assets, local paper Leadership reports. The new investor Capcom has agreed to contribute to Starcomms certain CDMA assets over which it intends to acquire control in separate, but related transactions.
These include the spectrum licence of MTS and the CDMA business of Multi-Links. In addition to facilitating the CDMA consolidation, Capcom will provide USD 98 million in cash to finance the integration of these assets, meet on-going short-term losses in the business and deliver the combined company’s new business plan. In return, Capcom will receive new Starcomms shares giving it a 90.5 percent stake in the company.
Helios Towers Mauritius Holdings Limited and Asset Management Corporation of Nigeria (AMCON) will also own stakes in Starcomms, together representing less than 12 percent of Capcom’s equity following Capcom’s investment, after also selling assets to the operator.