StarHub and MyRepublic Group this week announced an agreement for StarHub’s wholly-owned subsidiary, StarHub Online, to acquire a majority interest in a new entity which will hold MyRepublic’s broadband business in Singapore, providing broadband services for residential and enterprise customers.
StarHub’s total investment will be up to $162.8 million, with an initial consideration of $70.8 million for 50.1% shares of MyRepublic Broadband and a deferred consideration of up to $92 million should future financial performance matrices are met. MyRepublic Broadband, a profitable and growing business, currently holds 6% share of Singapore’s broadband market and has built a strong brand and amassed a loyal base of customers.
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. In the future, MyRepublic’s broadband customer base will stand to gain access to enhanced offerings from StarHub’s Consumer and Enterprise Business Groups.
MyRepublic will retain the remaining 49.9% and its senior management team, helmed by Co-Founder and CEO Malcolm Rodrigues. Upon completion of the acquisition, MyRepublic Broadband will be a StarHub subsidiary.
Nikhil Eapen, Chief Executive Officer, StarHub
We are delighted to partner MyRepublic to step up innovation and bring more value to more customers in Singapore. 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.
Malcolm Rodrigues, Chief Executive Officer, MyRepublic
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. Everything consumers and enterprises love about MyRepublic is about to get even bigger and better through the commercial and operational synergies from this partnership.
