PRINT THIS PAGE ECP, Actis exit investment in Nigerian telecom company Starcomms22/07/2008. Source: AltAssets. 
Africa-focused private equity firm Emerging Capital Partners and emerging markets investor Actis have exited their investment in Nigerian mobile telecommunications operator Starcomms through a NGN64.35bn ($547m) private placement of the company's shares, which were then listed on the Nigerian Stock Exchange. The deal yielded a return of 2.9 times ECP's initial investment, with total proceeds of $99.1m, according to the firm. ECP and Actis invested an initial, undisclosed sum in Starcomms in 2005. ECP committed additional capital over the next two years for a total investment of $34.3m, said the firm. ECP's investment was made through the firm's $407m AIG African Fund Infrastructure Fund.
Starcomms serves some 1.5 million subscribers. The company is Nigeria's fourth largest telecom operator and the country's largest CDMA 3G mobile operator, according to a statement.
Hurley Doddy, COO, ECP, 'Over the course of ECP's investment period, Starcomms has become more competitive in the Nigerian telecom sector and has significantly grown its subscriber base.'
Simon Harford, CEO, Actis West Africa, added, 'Actis's partnership with Chief Lababidi, the management team and ECP has meant we have been able to contribute to the growth of Starcomms and develop the business into a market leader in an exciting and competitive market. The successful closing of the private placement and its listing on the NSE are testament to the very positive investor sentiment and interest in this company.'
Actis has also partially divested its 20.5 per cent stake in food conglomerate UAC of Nigeria, by a placing of shares with international institutional investors and Nigerian retail investors.
In 2004, Actis acquired a 20.5 per cent stake of UACN for an undisclosed amount and took up two seats on the board. Following the transaction, Actis will remain a significant shareholder and retain a presence on the board.
Copyright © 2008 AltAssets
|
