StarHub has just announced that it will acquire a controlling interest in a newly formed company called MyRepublic Broadband, which will hold MyRepublic’s broadband business in Singapore. The move is expected to increase StarHub’s market share in Singapore’s broadband market to around 40 percent.
Through the acquisition, StarHub will acquire 50.1 percent of the shares in the new company for an initial purchase price 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 in debt for MyRepublic for a period of three years upon completion of the transaction.
Under the agreement, MyRepublic will retain the remaining 49.9 percent and its senior management team, led by Co-Founder and CEO Malcolm Rodrigues, will continue to run MyRepublic Broadband, which will become a StarHub subsidiary.
It will retain its corporate brand, however, so existing MyRepublic customers, who are primarily public consumers, will see continuity in service and customer relationships after the acquisition, with StarHub in oversight of the business.
The companies claim that customers can experience advanced connectivity options, over-the-top content, cloud gaming, and other experiences.
For StarHub and MyRepublic Broadband, this acquisition provides the opportunity for joint go-to-market opportunities, future wholesale offerings and cost savings.
Both telecommunications companies recently announced revamped service offerings, with StarHub bundling mobile, broadband and streaming services into one package, while MyRepublic launched a range of plans for different types of users.
This article was first published in the Hardware Zone.
