VENTURES AFRICA – Shares of Nigerian telecommunications company Starcomms, have been suspended by the Nigerian bourse from trading on its floor until the firm completes its merger with two other Code Division Multiple Access(CDMA) operators, Multilinks and MTS.
Starcomms, which is the only telecoms company listed on the Nigerian Stock Exchange (NSE), last week announced the impending merger with MTS and Multi-Links to produce CAPCOM, a stronger and larger CDMA competitor in Nigeria’ stiff telecoms market.
It is hoped the merger would resurrect the near-death operations of the operator of the new company.
Starcomms has not declared a bonus to shareholders since it was listed on the Nigerian Stock Exchange in 2008. Its share value over the years has plummeted by over 96 percent.
The emergence of heavily capitalized, effective and campaign friendly GSM operators in the Nigerian market has seen the troubled CDMA sub-sector dwindle in customers, operations and earnings.
According to Nigerian business daily, BusinessDay the Nigerian Communications Commission (NCC) has revealed that around 868,786 active lines were lost between January and June 2012 by CDMA operators in the country.