Capcom Limited will now control 90.5 percent stakes in Starcoms Plc, shareholders of Starcomms approved over the weekend.
Capcom is a special purpose vehicle comprising both local and international partners, created for the purpose of making an investment into Starcomms and related transactions.
Starcomms, the only telecommunication industry that is quoted on the Nigerian Stock Exchange has been having problems for some time as its fortunes have continued to nosedive.
It recorded a loss of N17.5 billion last year, while its operating performance this year has remained weak and was operating with the support of its lenders and creditors.
At its Annual General Meeting weekend in Abuja, shareholders approved for Capcom to inject $210 million capital as a way of reviving it.
At the meeting, shareholders agreed that Capcom can provide $85 million cash to acquire 66,550,000 ordinary shares of N0.50 each of the authroised share capital of the company at a share price of N50.
The Interim Chief Executive Officer of Starcomms, Olusola Oladokun, said the only viable option for the survival of the company is the proposed capital injection by Capcom.
"Otherwise, it is expected that the company will have to declare insolvency and undertake a voluntary liquidation," he said.
However, shareholders expressed concern that the new major investor in the company may sideline them in the activities and operations of the new structure.
"Don't shortchange us. Be truthful and honest to the last. Make sure you follow what you put in the scheme of arrangement," a shareholder said at the meeting.