StarHub revealed plans to strengthen its position in the Singaporean broadband market by taking a majority interest in rival MyRepublic’s internet business for SGD70.8 million ($52.4 million).
In a statement, the operator detailed its subsidiary StarHub Online will acquire a 50.1 per cent stake in a newly-incorporated entity called MyRepublic Broadband, which will become a subsidiary of StarHub.
StarHub stated MyRepublic Broadband currently holds a 6 per cent share of Singapore’s broadband market and the purchase will boost its portion to around 40 per cent.
CEO Nikhil Eapen stated the collaboration would boost “innovation” and customer value.
The operator has the option to inject an additional SGD92 million if certain financial performance targets are hit and agreed to refinance SGD74.2 million of MyRepublic’s debt for three years.
MyRepublic CEO Malcolm Rodrigues explained the investment and partnership “validate the vision of digital transformation we set out to bring to the industry”, and advanced the company’s “journey towards IPO”.
Rodrigues will lead MyRepublic Broadband.
The transaction will be funded using StarHub’s internal cash resources and is expected to close by December, subject certain conditions and standard regulatory approvals.
MyRepublic operates an MVNO in Singapore using StarHub’s network. It failed to become the city state’s fourth mobile operator in 2016.