StarHub is taking full ownership of MyRepublic's broadband business, having first taken a 50.1% stake in a deal first announced on Sept 2021.
On Aug 12, StarHub says it is paying $94.3 million for the remaining 49.9% stake in MyRepublic broadband business it does not already own. In addition, StarHub is paying $10.9 million for operating assets as well, for a total consideration of $105.2 million.
Based on MyRepublic Broadband’s unaudited financial statements for the year ended Dec 31 2024, the aggregate net asset value attributable to the sale shares and the sale assets was negative $0.6 million, generating earnings of $5.16 million.
Part of the consideration, of some $74.2 million, will be funded using an existing loan which was extended by StarHub to MyRepublic earlier.
On a pro forma basis, the deal, assuming it was completed on Jan 1 2024, would have lifted StarHub's EPS to 9.1 cents instead of 8.9 cents.
Back when StarHub first announced its investment in MyRepublic back in Sept 2021, it said it would pay up to $162.8 million for the 50.1% stake.
See also: ISDN acquires 51% stake in Indonesian hydropower plant contractor for $2 million
With the sale of its remaining stake in the broadband business, MyRepublic in Singapore is left with its mobile business. It used to operate in Australia and New Zealand and operates in Indonesia.
Industry consolidation
Just yesterday, Aug 11, Keppel announced the sale of its subsidiary M1's telco business to another mobile operator Simba, which is listed as Tuas in Australia. StarHub has been widely cited as the possible acquirer of M1.
See also: ASX-listed parent of Simba Telecom acquires M1’s telco business for $1.43 bil
In a filing to the exchange on Aug 12, StarHub says the full ownership of MyRepublic's broadband business will reinforce its leadership in the Singapore broadband market, catering to different customer segments via different brands.
With full ownership of MyRepublic broadband, StarHub can achieve "greater strategic alignment" and also control the operating assets.
“This isn’t just an acquisition. It’s an acceleration,” says StarHub CEO Nikhil Eapen.
“We’ve laid a strong foundation for growth and with MyRepublic Broadband fully under our wing, we can move faster, go further, and serve customers with even greater clarity and care.”
Referring to the local broadband market, Eapen adds: "We’re in a phase of consolidation and we’re not just watching it unfold, we’re shaping it."
StarHub closed at $1.16 on Aug 11, down 4.92%.
