Singapore-based StarHub Online Pte. Ltd. has announced the completion of the purchase of a majority of shares (50.1 per cent) of MyRepublic Broadband Pte. Ltd. (NewCo). Following Completion, NewCo is now regarded as an indirect subsidiary of the Company
StarHub’s total investment will be up to $162.8 million, with an initial consideration of $70.8 million for the 50.1% shares of MyRepublic Broadband and a deferred consideration of up to $92 million should future financial performance matrices are met.
MyRepublic Broadband currently holds a 6% share of Singapore’s broadband market. The 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, including the growing suite of products and services offering connectivity, Over-the-top content, cloud gaming and other experiences. The partnership will also create mutually beneficial opportunities through scale and synergies – in terms of joint go-to-market opportunities, future wholesale offerings, and cost savings.
In addition to equity, StarHub has agreed to refinance $74.2 million of debt for MyRepublic for a period of three years, on completion of the transaction.
MyRepublic will retain the remaining 49.9% and its senior management team, helmed by Co-Founder and CEO Malcolm Rodrigues, who will continue to lead MyRepublic Broadband.