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Capcom eyeing acquisition of Zoom, Intercellular networks

By on January 31, 2013

Following the smooth acquisition of Starcomms, Multi-links and MTS First Wireless, there are strong indications that Capcom Limited is also considering the acquisition of Zoom Mobile and Intercellular.

While Capcom awaits SEC’s approval to enable it merge the acquired three Code Division Multiple Access (CDMA) operators into one, it may have decided to add Zoom and Intercellular to its acquisition, which if successful, would make Capcom’s acquired CDMA operators, a total of five.

Industry sources confirmed to THISDAY that the company was particularly interested in increasing the size of it spectrums, which when combined to that of the already existing three operators will help solidify its grip on the CDMA segment of the telecommunications industry, enabling it become the first national LTE broadband operator.

However, they added that Capcom’s acquisition of Zoom and Intercellular would largely depend on the debt on their books, as it would not want to take on liabilities that could hamper the operations of the emerging entity.

For a one time struggling segment nearly wrestled away by the GSM companies, CDMA stakeholders were gladdened when the news came that a financially foreign and Nigerian investors were intent on rescuing the staggering CDMA segment.

Before going after Starcomms, the group began by acquiring 100 per cent of Multi-Links and MTS, thus giving it full ownership of the two CDMA operators. For Zoom Mobile and Intercellular, which have both suspended their operations, the interest shown by Capcom is good news for both networks.

Intercellular and Zoom were some of the early entrants into the CDMA segment of the mobile telephony market, but have been hamstrung by lack of adequate capital, mismanagement by their owners, and massive debts owed local and regional banks such as Afrexim Bank.

One major last hurdle to cross for Capcom still remains the Securities and Exchange Commission’s (SEC’s) approval for the merger of the CDMA networks it has already acquired.

In an earlier report by THISDAY, it was revealed that all the necessary documentation had been submitted to the SEC, which is required by law to grant approval to the merger within 30 days.

Capcom CEO, Demola Elesho, had also revealed that without the approval of the proposed merger of Starcomms, Multi-Links and MTS by the SEC, the new company would not be able to advance into the final operational stage.

In the interim, Elesho said Capcom would continue to render services to the already existing Starcomms, Multi-Links and MTS customers, while it keeps working on rolling out new services as soon as it gets SEC’s approval.