Starhub will acquire a 50.1% stake in new entity MyRepublic Broadband.
StarHub has just announced that it will be acquiring a majority share in a newly formed entity called MyRepublic Broadband, which will hold MyRepublic’s Singapore broadband business. The move is expected to see StarHub’s market share of Singapore’s broadband market grow to about 40%.
The acquisition will see StarHub taking a 50.1% stake in the new entity with an initial consideration of S$70.8 million as part of a total investment of up to S$162.8 million. In addition, StarHub has agreed to refinance S$74.2 million of debt for MyRepublic for a period of three years, on completion of the transaction.
Under the deal, MyRepublic will retain the remaining 49.9% and its senior management team, helmed by Co-Founder and CEO Malcolm Rodrigues, will continue to lead MyRepublic Broadband which will become a StarHub subsidiary. It will however retain its corporate brand so existing MyRepublic customers, which are primarily public consumers, will see a continuity of service and customer relationships post-acquisition with StarHub having an oversight of the business.
The companies claim that customers can experience increased connectivity options, over-the-top content, cloud gaming, and other experiences.
As for StarHub and MyRepublic Broadband, this acquisition provides the opportunity for joint go-to-market opportunities, future wholesale offerings, and cost savings.
Both telcos recently announced revamped service offerings with StarHub bundling mobile, broadband, and streaming services into a package, while MyRepublic launched a series of plans aimed at different user types.
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