The Infocomm Media Development Authority (IMDA) has approved StarHub’s acquisition of a 50.1% stake in rival ISP MyRepublic’s fixed broadband business which serves some 6,000 enterprise customers including SMEs and large organisations, alongside over 80,000 residential broadband subscriptions in Singapore. In a press release dated 9 March, IMDA said it had assessed that the proposed consolidation ‘will not substantially lessen competition in any telecommunication market in Singapore, and will not harm public interest’. It went on to note that all applicants will have to continue to abide by IMDA’s current regulatory requirements. Specifically, the acquisition will see StarHub’s StarHub Online unit buying the majority interest in a new business entity, MyRepublic Broadband, which holds MyRepublic’s broadband business in the city state.
In September 2021 Singapore’s second largest telecoms operator revealed it was spending up to SGD162.8 million (USD120.5 million) to acquire a majority stake in the rival fixed broadband business. At the time StarHub noted that the deal excludes MyRepublic’s mobile business and intern ational business operations. Upon completion, the transaction will lift StarHub’s fixed broadband market share by around six percentage points to close to 40%. Further, StarHub committed to an initial sum of SGD70.8 million for the 50.1% equity interest, plus a SGD92 million ‘deferred consideration dependent on future financial performance’. The new majority shareholder also set out its plan to refinance SGD74.2 million of debt for MyRepublic over a span of three years, upon completion of the transaction, leaving the latter holding 49.9%. MyRepublic’s senior management team including co-founder and CEO Malcolm Rodrigues will remain in their roles.