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Emerging Capital Sells Nigerian Starcomms Shares
PE firm targeting African investments plans continued M&A there.
July 22, 2008
Emerging Capital Partners sold its interest in Starcomms, a Nigerian mobile telecom company through a private placement of outstanding shares, the private equity firm announced.
The exit represents a 2.9-fold increase of what Emerging Capital’s 2005 investment in Starcomms was; rising from an input of $34.3 million to $99.1 million at the time of sale.
The shares were subsequently listed on the Nigerian stock exchange.
“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,” said Hurley Doddy, chief operating officer of Emerging Capital Partners. “We are proud to have worked with such a well-governed, world-class operator while the company expanded its national footprint, developed new services, and generated top corporate business accounts.”
Under Emerging Capital’s guidance, Starcomms grew over a three-year span to be the fourth largest telecom in Nigeria, growing to about 1.5 million subscribers from 100,000.
Emerging Capital was joined in its Starcomms investment by Canadian PE shop Actis.
Emerging Capital’s commitment to Starcomms was made with its AIG African Infrastructure Fund. The private equity firm has invested about $1.5 billion under management in Africa over the last eight years.
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