Starcomms Nigeria Plc says the merger arrangement between it and two other Code Division Multiple Access operators Multilinks and MTS is all about reviving a vital sector of the Nigerian telecoms sector.
Starcomms’ spokesman, David Babalola, who spoke yesterday with Daily Trust, said the $200m merger deal the telecoms company is entering into with some other investors “would be finalized by month end or early next month.”
Asked to confirm the merger talks, Babalola said, “Yes, it is ongoing but details will emerge later. By month end or early next month we should be able to finalize and call to brief the media about it.”
He said though the details are still sketchy he believes that it all about helping the vital sector of the telecoms sector—the CDMA.
Some newspapers had reported that Starcomms, Multilinks and MTS merger would produce a new CDMA called CAPCOM.
The CDMA operators in the country have been losing their subscribers thereby incurring huge operating losses.
Nigerian Communications Commission (NCC)’s statistics show that 868,786 active lines had been lost by Multilinks, Starcomms, Visafone and ZoomMobile between January and June 2012 alone. A newspaper reported that CAPCOM shareholders included MBC with 53 per cent shares; Middle East Capital Group, 25 per cent; and Helios Investment Partners, 11 per cent.
Others said to hold shares in the company are Oldonyo Laro Estate, five per cent; Bridgehouse Capital Limited, three per cent; Asset Management Company of Nigeria, two per cent; and private equity investors, one per cent.