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 per cent.
The acquisition will see StarHub taking a 50.1 per cent stake i n the new entity with an initial consideration of $70.8 million as part of a total investment of up to $162.8 million . In addition, StarHub has agreed to refinance $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 per cent 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.
This article was first published in Hardware Zone.