10 January 2013

Nigeria: Capcom Still Awaiting Sec's Approval for Rollout

Having received the nod from Starcomms' shareholders penultimate week to acquire the telecoms company in the $210 million deal, Capcom has said it cannot rollout services until it crosses the last hurdle.

Capcom, which is seeking to close Starcomms deal, in order to merge its operations with the already acquired Multi-links and MTS Wireless, has three hurdles to cross, before it can perfect its merger plan for the three Code Division Multiple Access (CDMA) operators.

It has since crossed the first huddle by raising $210 million in cash and infrastructure, as well as a second huddle by getting Starcomms shareholders' approval to acquire the firm.

But Capcom is yet to cross the third and final hurdle of getting approval from the Securities and Exchange Commission (SEC), before it can rolls out services.

Chief Executive Officer (CEO) designate of Capcom, Mr. Demola Elesho, told THISDAY in a telephone interview that unless the last huddle is crossed, Capcom may not be able to rollout services.

He was however optimistic that Capcom would meet the demands of SEC in getting its approval.

He said the commission had already been approached and the necessary documentation submitted, but that Capcom had to wait for another 30 days for it to conclude verification and approval of all documentations.

"While we are awaiting SEC's approval, we will be offering services to existing customers of Starcomms, Multi-links and MTS Wireless, since arrangements for the acquisition of Starcomms was almost concluded," Elesho said.

According to him, "We are looking at the third quarter of the year for the full commercial rollout of the new Capcom, which is a merger of Starcomms, Multi-links and MTS Wireless."

At its court ordered meeting and annual general meeting held last December in Abuja, Starcomms shareholders had approved the $210 million deal to acquire Starcomms.

About 99.83 per cent of its shareholders present at the meeting gave their support for the deal. The shareholders at the court ordered meeting represented 57.05 per cent of the total shareholder base of the company, while the shareholders who were present and voted at the AGM represented 56.62 per cent of the total shareholder base.

Commenting on the outcome of the meeting, the interim CEO of Starcomms Olusola Oladokun, said: "We are delighted that our shareholders have supported the board's recommendation to approve the investment by Capcom and are extremely pleased that, subject to a number of conditions precedent relating to the overall transaction, Starcomms can look to the future with hope.

'The capital injection combined with the injection of new spectrum and the CDMA assets of Multi-links provides a sound base for continued operations as well as enabling investment in new technology that will position Starcomms for the future in a very exciting space in the market."

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