StarHub has agreed to terminate a shareholding arrangement with Ensign Technologies, a Temasek Holdings subsidiary, in a deal that will deliver $115 million in cash and generate a fair value gain of more than $200 million on StarHub's books this year.
The transaction unwinds an assignment of rights covering a 16.81% stake in Ensign InfoSecurity, a cybersecurity firm the two parties set up as a joint venture in 2018. Temasek also controls 56% of StarHub, making this a deal between companies that share the same ultimate owner.
Under the arrangement, StarHub had been assigned the economic and voting rights over shares legally owned by Ensign Technologies. With the termination, those rights will revert to the Temasek unit, which will pay StarHub $115,030,413 in cash within 15 business days from April 15, 2026, unless otherwise agreed.
“[This deal] follows the natural evolution of the original transaction structure and allows StarHub to partially monetise its investment and redeploy capital towards other strategic and core business investments. Ensign remains an important cybersecurity partner to StarHub, and we look forward to the continued collaboration,” says StarHub in a statement.
Following the termination, StarHub will retain its direct holding of 179,628,066 shares in Ensign InfoSecurity, but its effective stake will fall to 38.92% from 55.73%. The change means the company will be treated as an associated company rather than a subsidiary on StarHub’s balance sheet.
That shift is expected to trigger a remeasurement of StarHub’s remaining interest, which the company estimates will result in a fair value gain of more than $200 million for the year ending December 2026. The final amount will depend on valuations at the point of reclassification.
The assignment had originally been due to lapse in October 2023 but was extended twice, most recently to April 30, 2026. The termination will now take effect on April 15, ahead of that deadline.
StarHub will also receive a separate $6 million cash distribution from Ensign InfoSecurity, to be effected through a capital reduction at the joint venture.
As at 10.20 am, shares in StarHub are trading at 2 cents higher, or 1.90% up, at $1.07.
