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Starcomms Seeks Shareholders Nod for Capcom’s Lifeline

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Starcomms Plc is seeking its shareholders’ approval to allow the injection of the much needed capital; technology; and expertise from Capcom Limited to rejig the troubled operator.

The shareholders nod at the company’s 2011 annual general meeting and court-ordered meeting scheduled for December 28, would pave way for the creation of the biggest CDM operator in the country which promises better returns on investment for all the stakeholders.

Starcomms said yesterday it is posting shareholders documentation relating to Capcom Limited proposed investment into the Company.

Capcom is the special purpose vehicle solely created to make an equity investment into Starcomms and was established in 2012 with money raised from investment and hedge funds, family offices and industry partners with years of commercial experience in emerging markets, especially Africa.

Starcomms has recently faced severe operational and financial challenges on account of the shifting competitive landscape in Nigeria’s telecommunications industry.

The challenges have resulted in the company operating with an unsustainably high level of debt and a stagnating operating performance.

As a consequence, Starcomms faces  severe liquidity crisis and the board of directors has therefore considered options available to introduce new capital into the Company.

Without this new capital the company will fail as a going concern and shareholder value will be lost.

Olusola Oladokun, interim CEO of Starcomms Plc said,  “Starcomms has experienced significant challenges over the past two years, at the heart of which have been the changing competitive and operational dynamics of the Nigerian telecommunications industry, especially in the voice business.

“As a result, the Board of Directors has been considering a number of options to re-position the Company for growth. After careful consideration, we believe that the investment by Capcom, which will provide the capital required for continued operations as well as enabling investment in new technology, combined with the injection of new spectrum and the CDMA assets of Multi-links, creates the best possible platform for Starcomm’s future. We strongly recommend – and look forward to – the transaction being approved by our Shareholders.” He added.

The new Starcomms will provide a strong and stable platform for the future, with the newly invested capital allowing the Company to service current debt obligations and so remain a going concern whilst enabling it to invest for future growth.

 Capcom will inject US$98 million of cash and US$112million of independently valued assets into the Company with the proposed rights issue subsequently raising further cash for use as working capital.

Ademola Eleso, Capcom’s CEO designate for Starcomms post transaction completion, said: “the opportunities for data providers in Nigeria have only started to be tapped. By combining additional spectrum from Multi-Links and MTS with the existing network and subscriber base of Starcomms we believe we can quickly create Nigeria’s leading provider of mobile broadband through an industry-leading “4G”-LTE network. This can only be good news for Starcomms’ loyal customers, partners, staff and Shareholders and I and our whole team look forward to the challenge of building Nigeria’s new Broadband internet champion.”

The new Starcomms will  also provide access  following completion of the transaction, to a contiguous 20MHz of spectrum in the 1900MHz range, the largest such allocation of any telecoms provider in Nigeria following the injection into the Company by Capcom of the spectrum allocations of Multi-Links and MTS.

This aggregation of spectrum will enable Starcomms to deliver a complete range of mobile broadband services using new generation IP-enabled, highs peed broadband 4G/LTE technology.

According to the Capcom, the new business will be a focused and strong business model based on the Company’s core offering, data services, the highest margin per user segment in the industry.

It is promised a market driven, fair and transparent recapitalisation solution for the Company that offers opportunities for Shareholders as the company develops as well as afresh and experienced management team and a new Board of Directors with extensive experience in telecoms globally and with a proven culture of adherence to corporate governance best practice and a track record of risk management excellence.

The Transaction will be effected through a scheme of arrangement  to be followed by a Private Placement and a Rights Issue.

The Scheme will involve the cancellation of N3,448,646,872 in the Company’s share capital, comprising 6,897,293,744 ordinary shares of 50 kobo each, and the subsequent issuing of 662,550,000new, fully paid up ordinary shares to Capcom, constituting 90.5% of the post scheme-reorganised, issued share capital.

As part of the Transaction, Capcom will inject a combination of assets and cash into Starcomms worth $210 million.

Part from the shareholders, the transaction is also  subject to obtaining various regulatory approvals including those of the Federal High Court, the Securities and Exchange Commission and the Nigerian Communications Commission which has already confirmed its “approval-in-principle”.

On the basis that the scheme and special resolutions are duly voted on and approved by Shareholders it is intended that following the necessary regulatory approvals Capcom will take control of Starcomms, install new management and nominate a new board of directors.

The company will be embarking on an investor roadshow to present the transaction to Shareholders, the dates and venues for which will be communicated to them directly. For those Shareholders unable to attend in person the Presentation will also be available to download on the investor relations section of the Starcomms website at:ir.starcomms.com


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Zipline Achieves One Millionth Delivery Milestone

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Zipline, the leading force in drone logistics delivery, has reached a monumental achievement with its one-millionth delivery to customers, signifying a significant leap forward in the logistics delivery sector. This historic milestone was marked by the delivery of two bags of IV fluid from a Zipline distribution center in Ghana to a local health facility.

Renowned for its innovative approach to designing, building, and operating autonomous delivery drones, Zipline’s zero-emission technology has garnered acclaim, covering over 70 million commercial miles across four continents.

Backed by investments surpassing several millions of dollars from notable supporters like Sequoia Capital, a16z, and Google Ventures, Zipline has firmly established itself as a disruptive leader in the industry. CEO Keller Rinaudo emphasizes the company’s commitment to key markets such as healthcare, quick commerce, and food delivery, envisioning a future where Zipline achieves 1 million deliveries per day.

“The three areas where the incentive really makes the most sense today are health care, quick commerce, and food,” underscoring Zipline’s commitment to partnering with top brands and institutions to transform the future of logistics using autonomous drones –  Keller Rinaudo Cliffton.

In Africa, Zipline has made a profound impact, forging significant partnerships across the continent. In Ghana alone, which accounts for about 54% of the one-millionth delivery milestone, Zipline’s collaboration with the government and health ministry has been pivotal. Since its inception, Zipline has completed over 540,000 drone delivery flights across Ghana, encompassing the delivery of crucial supplies, including 3,566,500 units of vaccines, 2,825,210 units of medical products, 14,807 units of blood products, and 18,289 units of animal health products. These deliveries have directly impacted the lives of over 17 million Ghanaians across 13 regions, saving 6,014 lives through emergency deliveries, including blood products and snake antivenom since 2019.

Beyond mere statistics, the company has facilitated the delivery of 12.2 million vaccine doses, including 2.8 million Covid-19 vaccines, leading to a 21% increase in vaccination coverage and a 44% reduction in missed opportunities to vaccinate in Ghana. These efforts have potentially saved 727 lives due to increased vaccination coverage. Additionally, Zipline’s infrastructure expansion in Ghana, with six distribution centers strategically located across the country, has enabled swift and efficient on-demand drone delivery services.

Not only this, the technology has facilitated the vaccination of 104,000 cattle against Anthrax in northern Ghana, safeguarding both human and animal lives. Such interventions have also extended to the agricultural sector, where 10.4 million doses of poultry vaccines have been delivered to poultry farmers nationwide, combating diseases such as Newcastle disease, Fowl pox, and Gumboro.

But Zipline’s impact in Africa extends far beyond Ghana’s borders. Operating in Rwanda, Kenya, Côte D’Ivoire, and Nigeria, the company has become a beacon of hope for healthcare accessibility and disease prevention. In Rwanda, Zipline serves as a lifeline, delivering 75% of the country’s blood supply outside of Kigali, drastically reducing maternal mortality rates due to postpartum hemorrhage by 88%. Additionally, the company’s deliveries of agricultural products have elevated farmers’ fertility rates by 10% compared to the national average.

In Kenya, Zipline’s collaborations with the Elton John AIDS Foundation have facilitated the delivery of HIV/AIDS prevention and treatment products, empowering individuals to manage their health effectively. Similarly, in Nigeria, Zipline’s expansive coverage encompasses over 500 health facilities in Kaduna, more than 350 in Cross River State, and 200 in Bayelsa. Teaming up with Gavi, the Vaccine Alliance, Zipline focuses on reaching children in remote regions, ensuring equitable access to life-saving immunizations.

Zipline’s adaptive approach and tailored delivery services reflect its commitment to meeting the diverse needs of populations and sectors. The achievement of the one millionth delivery milestone underscores its dedication to enhancing healthcare outcomes and addressing societal needs across Africa. As Zipline continues to innovate and expand its reach, it is poised to shape the future of healthcare delivery on the continent and beyond.

 

 

 


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Telcos Record N27Bn Loss from Damaged Fibre Cables

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Repairs and revenue losses from damaged cables are estimated to have cost Nigeria’s telecom industry almost N27bn ($23m) in 2023, according to documents obtained by Bloomberg.

Telcos Record N27Bn Loss from Damaged Fibre Cables

MTN Nigeria, the biggest wireless operator in Africa’s most-populous nation, and Airtel Africa Plc bore the brunt of the costs, the documents show.

MTN suffered more than 6,000 cuts on its fiber cable last year, the documents show.

On Feb. 28, a cut in its network in three different locations by a road construction firm, an oil serving company, and someone burning rubbish in a manhole meant customers faced more than five hours of data and voice outages.

The operator relocated 2,500 kilometers (1,553 miles) of vulnerable fiber cables between 2022 and 2023, at a cost of more than N11bn —enough to build 870 kilometers of new fiber lines in areas without coverage.

Broadband fibre optic cables form the backbone of modern communication infrastructure, enabling the high-speed data transmission that underpins a wide range of personal, business, and societal activities.

On several occasions, the Nigerian Communications Commission (NCC), the industry regulator, has acknowledged this challenge and expressed willingness to work on measures to address it.

These measures include stricter regulations to deter vandalism and improved collaboration between telcos and government agencies responsible for construction activities.

According to the NCC, the telecom sector will make up more than a fifth of the country’s gross domestic product by the end of 2027, up from 13.5 per cent in the third quarter of last year.


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NCAIR Relaunch: Pantami, Tijani Fight for Credit

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Isa Pantami, former minister of Communications and Digital Economy, has voiced his discontent over the relaunch of the National Centre for Artificial Intelligence and Robotics (NCAIR) by Bosun Tijani, his successor.

Isa Pantami, former minister of Communications and Digital Economy,

Tijani announced the revitalization of NCAIR, highlighting enhancements in its capacity and partnerships with global tech firm Cisco.

However, Pantami took to social media to assert that NCAIR was already established during his tenure in November 2020, dubbing it “the first of its kind in Africa” and emphasizing its effectiveness in training numerous Nigerians.

Tijani responded by detailing the new initiatives accompanying the relaunch, including increased computing infrastructure, dedicated research labs, and remote connectivity for AI hubs across the country. He also unveiled outcomes from the Ministry’s National AI Workshop, such as the country’s first Multilingual Large Language Model and partnerships aimed at accelerating AI development projects of national significance.

The exchange between Pantami and Tijani underscores ongoing efforts to advance AI research and application in Nigeria while navigating questions of continuity and leadership transition within the Ministry.

 


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