Singapore’s StarHub to acquire MyRepublic’s broadband unit
06:48, 23 September 2021
Singapore’s StarHub plans to buy 50.1% stake in the broadband unit of MyRepublic for SGD162.8m ($120.5m) to boost its market share in the city state.
The telecom company will pay SGD70.8m upfront, with the remaining SGD92m in deferred payment, depending on “financial performance matrices,” it said in an exchange filing on Wednesday.
StarHub will also refinance MyRepublic’s debt of SGD74.2m within three years following the deal’s closure.
MyRepublic will retain the remaining 49.9% stake with co-founder and chief executive Malcolm Rodrigues continue to lead the broadband business.
StarHub market share to rise to 40%
“The proposed transaction will consolidate and strengthen StarHub’s position in the Singapore broadband market, expanding its market presence to 40% and steering long-term business growth,” StarHub said.
Nikhil Eapen, StarHub CEO, said: “COVID-19 has shown just how important quality broadband services are to our society, and we intend to scale up and deliver better and faster services to our customers, while realising high-quality earnings accretion.”
The deal is subject to regulatory approvals and expected to be concluded by the end of the year. In afternoon trade, StarHub’s shares rose 3.3% to SGD1.27.
MyRepublic eyes IPO
“StarHub’s investment and partnership with us validate the vision of digital transformation we set out to bring to the industry, in Singapore and beyond…More importantly, this milestone propels us forward in MyRepublic’s journey towards IPO (initial public offering). With StarHub onboard as a key investor, we are charting a new course for the long-term direction of the industry,” said MyRepublic’s Rodrigues.