Three telecommunications companies Multilinks, Starcomms and MTS are said to be in merger talks of a deal that would cost over US$200 million.
“Yes, there is arrangement on that and we shall soon come up with more details on that. It is a merger arrangement,” ItNewsAfrica quoted an official in Abuja as having said.
The three companies brought together will operate under the name CAPCOM, and it is said that Helios Investment Partners will hold 11 percent in CAPCOM, while MBC will have 53 percent and Middle East Capital Group 25 percent.
Leadership (Abuja-based publication) quoted a source at the Association of Telecommunications Companies of Nigeria (ATCON) as having confirmed that the agreement was in its final stages of completion.
Nigeria’s Communication Commission statistics show that the companies lost a combined 868 786 active lines in the first six months of this year. CDMA operators have also been complaining about the lack of funding, something that limits their expansion capabilities.
The merger plan is seen as a way of establishing a unified strength in terms of ability to expand and develop their services further in the country.