Shareholders of Starcomms, the Nigerian code division multiple access (CDMA) telecommunications service provider, have approved a share structure reorganisation as part of Capcom’s acquisition of the company.
Capcom’s portfolio companies manage approximately US$1.25 billion in the commercial banking and asset management sectors.
In October last year Capcom and Starcomms reached an agreement for a capital investment by Capcom of cash and assets, which are independently valued at US$210 million, to be injected into Starcomms.
HumanIPO reported in December that Starcomms was on the brink of receiving the investment and shareholders of Starcomms were set to decide on a takeover bid in order to rejuvenate performance.
The shareholders have now officially approved the takeover and endorsed the proposition of the US$210 million Capcom investment. The investment deal is now subject to regulatory approval.
Starcomms said recently it was facing major financial and operational challenges due to the shifting competitive landscape involving the Nigerian telecommunications industry.
“We believe that the investment by Capcom, which will provide the capital required for continued operations as well as enabling investment in new technology, combined with the injection of new spectrum and the CDMA assets of Multi-links, creates the best possible platform for Starcomms’ future,” said the telecommunications service provider.