Nigerian telecommunications companies Multilinks, Starcomms and MTS (who all form part of the Code Division Multiple Access), could merge into one company in a deal reportedly valued at $200-million.
If the three entities merge, it would be the largest CDMA network operator in the country and will be trading under that name CAPCOM. While details are still sketchy, Abuja-based publication Leadership quoted an official who confirmed the planned merger.
“Yes, there is arrangement on that and we shall soon come up with more details on that. It is a merger arrangement,” the official said. The publication also confirmed that Helios Investment Partners will hold 11% in CAPCOM, while MBC will have 53% and Middle East Capital Group 25%.
According to Leadership, “a source at the Association of Telecommunications Companies of Nigeria (ATCON), also confirmed the development, stressing that the agreement was in final stage of completion. Before now, CDMA operators complained about lack of funding which dwarfed their expansion capabilities even with the Unified License granted them by the NCC.”
Statistics from Nigeria’s Communications Commission showed that the companies lost a combined 868 786 active lines in the first six months of this year, with the merger supported by the former Executive Vice Chairman of the Nigerian Communications Commission, who said “operators in the CDMA business must come together as one.”
Charlie Fripp – Consumer Tech editor