The company has already issued the documentation on a proposal from Capcom Limited which has been given the thumbs up by Starcomms’ board of directors.
Olusola Oladokun, Interim Chief Executive of Starcomms, said: “Starcomms has experienced significant challenges over the past two years, at the heart of which have been the changing competitive and operational dynamics of the Nigerian telecommunications industry, especially in the voice business. As a result, the board of directors has been considering a number of options to reposition the company for growth.”
The company added that in line with the Nigerian laws, it has filed for and obtained the required
sanction of the Federal High Court, both of which are currently subject to the company’s shareholders’ approval.
The meeting ordered by the Federal High Court will be held with the 2012 annual general meeting (AGM) of the company in late December.
Shareholders are expected to vote on the scheme and pass special resolutions directing the private placement and approving the transaction. After this there will be final regulatory approvals before Capcom will assume control of Starcomms.
Part of the conditions for the transaction is Capcom’s injection of assets and cash into Starcomms currently valued at $210 million.
Oladokun added the management of the company is confident Capcom’s investment will provide the capital required for Starcomms’ continued operations.
He added the transaction will bring about investment in new technology with the injection of new spectrum and the CDMA assets of Multi-links.