Connect with us

Telecom

Starcomms Seeks Shareholders Nod for Capcom’s Lifeline

Published

on

Kindly share this post

Starcomms Plc is seeking its shareholders’ approval to allow the injection of the much needed capital; technology; and expertise from Capcom Limited to rejig the troubled operator.

The shareholders nod at the company’s 2011 annual general meeting and court-ordered meeting scheduled for December 28, would pave way for the creation of the biggest CDM operator in the country which promises better returns on investment for all the stakeholders.

Starcomms said yesterday it is posting shareholders documentation relating to Capcom Limited proposed investment into the Company.

Capcom is the special purpose vehicle solely created to make an equity investment into Starcomms and was established in 2012 with money raised from investment and hedge funds, family offices and industry partners with years of commercial experience in emerging markets, especially Africa.

Starcomms has recently faced severe operational and financial challenges on account of the shifting competitive landscape in Nigeria’s telecommunications industry.

The challenges have resulted in the company operating with an unsustainably high level of debt and a stagnating operating performance.

As a consequence, Starcomms faces  severe liquidity crisis and the board of directors has therefore considered options available to introduce new capital into the Company.

Without this new capital the company will fail as a going concern and shareholder value will be lost.

Olusola Oladokun, interim CEO of Starcomms Plc said,  “Starcomms has experienced significant challenges over the past two years, at the heart of which have been the changing competitive and operational dynamics of the Nigerian telecommunications industry, especially in the voice business.

“As a result, the Board of Directors has been considering a number of options to re-position the Company for growth. After careful consideration, we believe that the investment by Capcom, which will provide the capital required for continued operations as well as enabling investment in new technology, combined with the injection of new spectrum and the CDMA assets of Multi-links, creates the best possible platform for Starcomm’s future. We strongly recommend – and look forward to – the transaction being approved by our Shareholders.” He added.

The new Starcomms will provide a strong and stable platform for the future, with the newly invested capital allowing the Company to service current debt obligations and so remain a going concern whilst enabling it to invest for future growth.

 Capcom will inject US$98 million of cash and US$112million of independently valued assets into the Company with the proposed rights issue subsequently raising further cash for use as working capital.

Ademola Eleso, Capcom’s CEO designate for Starcomms post transaction completion, said: “the opportunities for data providers in Nigeria have only started to be tapped. By combining additional spectrum from Multi-Links and MTS with the existing network and subscriber base of Starcomms we believe we can quickly create Nigeria’s leading provider of mobile broadband through an industry-leading “4G”-LTE network. This can only be good news for Starcomms’ loyal customers, partners, staff and Shareholders and I and our whole team look forward to the challenge of building Nigeria’s new Broadband internet champion.”

The new Starcomms will  also provide access  following completion of the transaction, to a contiguous 20MHz of spectrum in the 1900MHz range, the largest such allocation of any telecoms provider in Nigeria following the injection into the Company by Capcom of the spectrum allocations of Multi-Links and MTS.

This aggregation of spectrum will enable Starcomms to deliver a complete range of mobile broadband services using new generation IP-enabled, highs peed broadband 4G/LTE technology.

According to the Capcom, the new business will be a focused and strong business model based on the Company’s core offering, data services, the highest margin per user segment in the industry.

It is promised a market driven, fair and transparent recapitalisation solution for the Company that offers opportunities for Shareholders as the company develops as well as afresh and experienced management team and a new Board of Directors with extensive experience in telecoms globally and with a proven culture of adherence to corporate governance best practice and a track record of risk management excellence.

The Transaction will be effected through a scheme of arrangement  to be followed by a Private Placement and a Rights Issue.

The Scheme will involve the cancellation of N3,448,646,872 in the Company’s share capital, comprising 6,897,293,744 ordinary shares of 50 kobo each, and the subsequent issuing of 662,550,000new, fully paid up ordinary shares to Capcom, constituting 90.5% of the post scheme-reorganised, issued share capital.

As part of the Transaction, Capcom will inject a combination of assets and cash into Starcomms worth $210 million.

Part from the shareholders, the transaction is also  subject to obtaining various regulatory approvals including those of the Federal High Court, the Securities and Exchange Commission and the Nigerian Communications Commission which has already confirmed its “approval-in-principle”.

On the basis that the scheme and special resolutions are duly voted on and approved by Shareholders it is intended that following the necessary regulatory approvals Capcom will take control of Starcomms, install new management and nominate a new board of directors.

The company will be embarking on an investor roadshow to present the transaction to Shareholders, the dates and venues for which will be communicated to them directly. For those Shareholders unable to attend in person the Presentation will also be available to download on the investor relations section of the Starcomms website at:ir.starcomms.com


Kindly share this post

Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

Continue Reading
Advertisement
Comments

Telecom

Rewane, Financial Expert Backs Telcos’ Move to Hike Tariff

Published

on

Kindly share this post

Bismarck Rewane, managing director/chief executive officer, Financial Derivatives Company Limited has backed telecommunication companies’ move to increase tariffs.

Rewane, Financial Expert Backs Telcos’ Move to Hike Tariff

Recall that telecom companies recently reiterated calls for an increase in prices of calls, data, and other services.

They argue that current prices are insufficient to maintain their business operations.

This request is contained in a communique signed by the Association of Licensed Telecom Operators of Nigeria (ALTON) and the Association of Telecommunication Companies of Nigeria (ATCON).

The telecom providers are advocating for cost-reflective tariffs, claiming that adverse economic headwinds are threatening their financial viability.

The operators stated that its general service pricing framework has not been reviewed upward in the last 11 years because of regulatory constraints.

“For a fully liberalised and deregulated sector, the current price control mechanism, which is not aligned with economic realities, threatens the industry’s sustainability and can erode investors’ confidence,” the telcos said.

The telcos called on the government to facilitate a constructive dialogue with its industry stakeholders to address pricing challenges and establish a framework that balances consumers’ affordability with their financial viability.

This push for higher prices coincides with MTN Nigeria reporting a loss due to foreign exchange losses in 2023 and Airtel experiencing declining profits amid an economic downturn in the country.

While the development has triggered a backlash in some quarters, Rewane said telco pricing needs to reflect current realities.

He was a guest on weekend’s edition of Channels Television’s Politics Today

 

 

 

 


Kindly share this post
Continue Reading

Telecom

Africa Data Centres Unveils ADC Channel Programme

Published

on

Kindly share this post

Africa Data Centres, a division of the Cassava Technologies group, is excited to announce the launch of its exclusive channel partner programme, ADC Channel.

Africa Data Centres Unveils ADC Channel Programme

This programme is designed to establish colocation and ecosystem partnerships, empowering members to expand their product portfolio & offerings alongside their market presence including an expanded data centre footprint.

ADC Channel presents a unique opportunity for global carriers, Internet Service Providers (ISPs), system integrators, Data Centres, Mobile Network, Content Developer, telecommunications companies, network infrastructure operators, hyperscalers and others to deliver state-of-the-art, sustainable and cost-effective digital solutions to their clients.

The primary objective of ADC Channel is to foster collaboration amongst partners, facilitating the delivery of optimised solutions and comprehensive support to clients. Partners enrolled in ADC Channel will benefit from a flexible approach that accommodates various partnership and go-to-market (GTM) models.

Finhai Munzara, CFO of Africa Data Centres, emphasises that the benefits of the ADC Channel programme extend to all types of partners.

“Our facilities are designed with the needs of hyper-scale, wholesale & enterprise clients in mind, catering to their technical, operational and commercial requirements. Whether it’s greenfield projects, built-to-suit facilities, powered shells, dedicated halls, or hybrid colocation, we offer flexible, scalable and sustainable solutions that suit partners of every kind.

He elaborates on the advantages of becoming an Africa Data Centres Partner.

Firstly, clients gain an additional product offering & footprint to augment their existing portfolio, enabling them to offer bundled solutions. This not only enhances their current revenue streams but also positions them for further growth & retention with both existing and future customers.

Africa Data Centres has also developed ADC Marketplace, a pioneering platform designed to empower partners and customers across the continent.

This innovative marketplace provides a dynamic space for partners to showcase their services and for customers to explore offerings, fostering collaboration and visibility within the African tech community. Offering unmatched connectivity and growth opportunities, the ADC Marketplace stands as the ultimate platform for African enterprise organisations and tech companies seeking to thrive in today’s digital landscape.

Partners stand to benefit from reduced churn, as colocation is inherently a ‘sticky’ product with minimal price erosion. By offering best-of-breed colocation services from Africa’s leading data centre provider, partners can differentiate themselves from competitors.

Partners will also enjoy seamless access to data centre experts, continuous commercial and technical support, and regular, complimentary training for their sales and product teams.

Furthermore, partners face no financial risk, as participation in the channel programme requires no investment and entails no capital expenditures for building data centres.

Partners can also leverage flexibility in setting their selling prices and receive significant upfront discounts, further bolstering their competitive advantage. Exclusive benefits include competitive pricing, dedicated sales & Presales Teams, Remote Hands support and access to joint marketing resources & activities, enabling partners to thrive in the marketplace.

Munzara emphasised that ADC Channel programme  epitomises Africa Data Centres’ commitment to fostering collaborative growth and innovation. “It serves as a platform for clients to enrich their product portfolios and seamlessly extend their business across diverse ecosystems with openness and transparency.” Africa Data Centres warmly invites partners to embark on this transformative journey towards shaping the future of digital connectivity in Africa.

“The programme prioritises mutual growth, leveraging Africa Data Centres’ profound industry expertise and extensive infrastructure,” Munzara concluded.

 


Kindly share this post
Continue Reading

Telecom

Airtel Hosts Interactive Knowledge Session for Secondary School Girls

Published

on

Kindly share this post

As part of its commitment to empowering and mentoring women to become global leaders while breaking stereotypes and closing gender gaps, the Airtel Women Network, a platform comprising female employees of Airtel Nigeria, welcomed girls from Airtel’s adopted school, Alaba Oro Comprehensive Senior High School, Ajegunle, to commemorate International Day of Girls in ICT on Monday.

Led by the telco’s IT Director, Kemi Ariyo, the session emphasized the need for the rise of influential female role models in driving progress within Science, Technology, Engineering, and Mathematics (STEM) careers. It also served as an avenue to inspire young girls about the vast opportunities within the Information and Communication Technology (ICT) field.

During the session, Ogo Ofomata, Director of Enterprise and Airtel Business and President of the Airtel Women Network, shared insights on the significance of the 2024 commemoration with the students.

“Leadership entails leading yourself to do the things you have to do. With regard to the theme of this year’s International Girls in ICT Day, which is Leadership, our goal is to empower young girls and women to become programmers, coders, designers and to pursue careers in the ICT sector, ultimately becoming leaders in the IT sector,” she said.

The highlight of the event was a thought-provoking session led by Kemi Ariyo, IT Director at Airtel Nigeria, emphasizing the importance of technological knowledge in addressing various global challenges.

In her words, “The world revolves around technology and everything we do today has to do with technology. You can get into that space by adopting hard work, smart work, and an active involvement in internship programs. In addition, just as technology can be used in music and other sectors, learning technology can help you achieve your goals of problem- solving in this digital age.”

Also speaking at the event, Phanindra Nichanametla, Chief Financial Officer, Airtel Nigeria, restated Airtel’s tagline ‘A Reason to Imagine’, reassuring the students of Airtel’s commitment to encouraging positive imagination. “A very important note to take home from this event is that Airtel is here to change your imagination and give you opportunities to imagine more,” he said.

Airtel remains committed to promoting initiatives that promote gender equality and diversity in the workplace. By investing in the education and empowerment of young girls in ICT, Airtel Nigeria continues to pave the way for a more inclusive and prosperous future in the world of technology.


Kindly share this post
Continue Reading

Trending