Starcomms Plc, a Nigerian telecommunications company, said it reached an agreement with Capcom Ltd. for investment of cash and assets worth $210 million in return for a 90.5 percent stake.
“The proposed transaction will create a leading CDMA operator in Nigeria and represents a fundamental step as part of the consolidation move in the Nigerian telecoms industry,” Lagos-based Starcomms said today in an e-mailed statement.
Nigeria, Africa’s most populous nation with more than 160 million people, has one of Africa’s fastest-growing telecommunication industries, with about 102 million mobile-phone subscribers, according to industry regulator Nigeria Communications Commission. The Code Division Multiple Access, or CDMA, networks have about 3.5 million customers, or a 3.4 percent share of the country’s mobile-phone subscribers.
Starcomms has recently faced “severe operational and financial challenges” because of “the shifting competitive landscape in Nigeria’s telecommunication industry,” the company said in the statement.
Starcoms will get assets including a license operated by 1st Communications Ltd. and the CDMA mobile business of Multi-Links Telecommunications Ltd., according to the statement.