Swap Technologies and Telecoms Nigeria Plc has raked in some $100 million in investment fund to accommodate an expected expansion to further reposition it for wider service provisioning in the country, Nigeria CommunicationsWeek has learnt.
This is coming as the telecom infrastructure building and managed services provider raised its share capital to N12 billion.
In a special resolution of the company’s board at its recent Extra-Ordinary General Meeting held in Lagos, Swap Technologies agreed to raise the share capital to attract new investments.
“The share capital of the company is hereby increased from N1.5 billion divided into 3 billion ordinary shares of 50k each to N12 billion by the creation of 21 billion preference shares of 50k each.”
According to the resolution, “Upon the conversion of any preference shares into ordinary shares such converted shares shall immediately form part of the ordinary shares of the company.”
The equity investment received from Tasc Towers Nigeria Limited, the new equity investor is to be disbursed in three tranches.
Godwin Adokpaye, chairman of the board said he is very confident about the future prospects and viability of Swap and her businesses.
“The board has evaluated the proposal received from Tasc Towers Nigeria Limited of an offer to the tune of $100 million to be disbursed in three tranches and is very confident about the future prospects and viability of the businesses in Nigeria,” he said.
He also noted that this had become necessary because it is a resultant need to undertake in line with its governance review arising from the restructuring of the company, which has become imperative.
Adokpaye explained further that Swap is also updating its constitution to help reflect the changes in the structure and position of the firm with the amendment of its memorandum and articles of association with the consent of its shareholders.
He also pointed out that the board, after series of meetings on the issue had entered into and signed an investment and shareholders’ agreement, which contains the terms and conditions upon which the investor has agreed to “subscribe for convertible redeemable preference shares”.
He noted that in a bid to properly accomplish the restructuring and still comply with the directives of the regulatory bodies, the company would need the advice and guidance of seasoned professionals for more efficient work output.