StarHub Online is set to buy a majority stake in MyRepublic Group’s broadband business entity that is providing broadband services for residential and enterprise customers in Singapore.
StarHub’s investment will be up to $162.8 million, with an initial consideration of $70.8 million for 50.1 percent stake in MyRepublic Broadband and a deferred consideration of up to $92 million depending on financial performance.
MyRepublic Broadband, a profitable and growing business, holds 6 percent share of broadband market in Singapore.
The transaction will consolidate and strengthen StarHub’s position in the Singapore broadband market, expanding its market presence to 40 percent.
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 percent and its senior management team. MyRepublic Co-Founder and CEO Malcolm Rodrigues will continue to lead MyRepublic Broadband.