StarHub Online, a unit of Singapore telco StarHub, will acquire 50.1% of MyRepublic Group’s local broadband business for up to US$162.8 million. StarHub will pay US$70.8 million upfront, while the rest will depend on future performance targets.
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MyRepublic Broadband, the internet service provider being acquired, serves residential and enterprise customers with around a 6% share of Singapore’s broadband market. The business is expected to become a StarHub subsidiary by December this year.
The move puts StarHub on track to meet its target of achieving a market presence of 40% in the city-state by tapping into MyRepublic’s regional market growth. The deal will also help expand the latter’s product offerings.
“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 realizing high-quality earnings accretion,” said Nikhil Eapen, CEO of StarHub.
With the sale, MyRepublic is also getting a step closer to going public, CEO Malcolm Rodrigues said in a statement. Besides Singapore, the telco also operates in New Zealand and Australia and is looking to grow in the Asia Pacific.
Editing by Miguel Cordon and Arpit Nayak
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