Here are summaries of interesting corporate developments surrounding two blue-chip companies and a telecommunication business.
StarHub Ltd (SGX: CC3)
Telecommunication company StarHub announced that it had acquired a 50.1% stake in the broadband division of MyRepublic Group Limited.
MyRepublic is a telecommunications operator with businesses in Singapore, New Zealand and Australia.
The group will pay up to S$162.8 million for the stake, with S$70.8 million upfront and another S$92 million in deferred payments should performance metrics be met.
MyRepublic’s broadband currently holds a 6% market share in Singapore as of 31 March 2021 and has an asset-light operating model.
The business has a total of 175,000 regional subscribers, of which 89,000 belong to Singapore. It also generated S$10.4 million in net profit for the fiscal year ended 30 June 2021.
The rationale for this acquisition is to grow StarHub’s broadband business further with the addition of 89,000 subscribers for a total combined subscriber base of 578,000 as of 30 June 2021....