Barring last minute hitches, a tripartite merger valued at $200m (about N31bn)will soon be sealed by 3 Code Division Multiple Access operators in Nigeria.
The companies involved in this deal are Starcomms, Multlinks and MTS.
Sources within the telecommunications industry say that the deal which is in its final stages is to ensure efficient service delivery and offer stiff competition to operators of Global System for Mobile better known as GSM.
The new mega CDMA network operator will be known as CAPCOM with equities owned in the following proportion : MBC, 53 per cent shares; Middle East Capital Group, 25 per cent shares while Helios Investment Partners holds 11 per cent shares. Others said to hold shares in the company include Oldonyo Laro Estate five per cent; Bridgehouse Capital Limited three per cent; Asset Management Company of Nigeria two per cent and Private Equity Investors put at one per cent.
Industry pundits say the deal will bolster confidence among stakeholders that the CDMA sector will soon stage a comeback in the telecoms market.
It will be recalled that stakeholders have been clamouring for the resurrection of the CDMA sector, which fortunes have dwindled remarkably over the past few years, especially with the growing preference of customers for GSM services.
CDMA operators complained about lack of funding, which dwarfed their expansion capabilities even with the Unified License granted them by the Nigerian Communication Commission, NCC.
It was learnt that only Visafone, itself a product of merger and acquisition involving Cellcom, ITN and Bourdex, can currently be said to be providing services on a serious note.
Starcomms, which at a time was the bride of the industry, later went down the distressed lane.