Starcomms secures USD62m loan facility

9 Jan 2013

The African Export-Import Bank (Afreximbank) has concluded arrangements to extend a loan facility of USD62 million to Capcom, the new owner of struggling CDMA operator Starcomms, reports local newspaper Leadership. Late last year Capcom reached an agreement to invest USD210 million in Starcomms in return for a 90.5% stake. Capcom – a special purpose vehicle created for investing in Starcomms and related transactions – comprises a number of investors, including MBC, a private trust with a focus on investing in emerging markets, and Pan African Capital through its asset management division, PACAsset Management. As part of the agreement, Capcom aims to create a national broadband operator by acquiring the spectrum licence of MTS and the CDMA business of Multilinks, and it will provide USD98 million in cash to finance their integration with Starcomms, in a bid to improve its competitiveness in Nigeria’s overcrowded telecoms market. In return, Capcom has received shares in Starcomms equating to 90.5% of the operator’s restructured share capital.

Nigeria, Capcom Telecoms (formerly Starcomms)