Capcom is still awaiting approval for the merger of three Nigerian Code Division Multiple Access (CDMA) operators from the Securities Exchange Commission (SEC), without which the transaction cannot proceed, says the prospective CEO.
The CEO-in-waiting of Capcom Demola Elesho revealed concerns to ThisDay that without the approval of the proposed merger of three Nigerian operators – Starcomms, Multi-Links and MTS Wireless – by the SEC, the new entity may not be able to advance into an operational stage.
However, Elesho confirmed that all the necessary documentation has been submitted to the SEC, and that a further 30 days will pass before a decision may be expected regarding approval, while the Commission verifies documents and comes to a conclusion. He added that he is confident approval will be granted.
Limited services will be made available to existing customers of the three operators involved in the merger in the meantime, Elesho noted.
“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,” he said.
With respect to the timing of a full roll-out pursuant to approval being granted, Elesho added: “We are looking at the third quarter of the year for the full commercial rollout of the new Capcom.”
The Capcom merger recently saw significant progress when shareholders of Starcomms congregated at a court-ordered meeting to vote on the merger. Of the total shareholder base of the company, 57.02 percent attended the meeting, and a resounding 99.83 percent of attendees voted in favour of the merger.
The interim CEO of Starcomms Olusola Oladokun commented on the vote, adding his support to the merger proposal.
“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,” Oladokun said.
Capcom has also managed to raise the $210 million in cash and infrastructure to fund the merger, as such the only factor hindering the project currently is the SEC approval.
