StarHub has announced plans to acquire a controlling stake in MyRepublic’s Singapore broadband business, taking a controlling 50.1% stake in a transaction of up to $ 162.8 million.
The terms of the deal will see StarHub Online – a wholly owned subsidiary of StarHub – take majority ownership of a new entity under the banner of MyRepublic Broadband, which will provide broadband services to residential and corporate customers. .
StarHub’s total investment will be $ 162.8 million, with initial consideration of $ 70.8 million for 50.1% of the shares of MyRepublic Broadband and deferred consideration of up to $ 92 million if the future financial performance indicators are achieved.
In addition to equity, StarHub agreed to refinance $ 74.2 million in debt for MyRepublic for a period of three years, upon completion of the transaction. MyRepublic will retain the remaining 49.9% and its management team, led by co-founder and CEO Malcolm Rodrigues, will continue to lead MyRepublic Broadband.
âWe are delighted to partner with MyRepublic to intensify innovation and bring more value to more customers in Singapore,â said Nikhil Eapen, CEO of StarHub. “COVID-19 has shown how important quality broadband services are to our company, and we intend to grow and provide better and faster services to our customers, while achieving revenue accumulation. High quality.
âWe can mutually benefit from StarHub’s digitally-driven technology platforms, our challenger spirit in innovation and customer focus, as well as MyRepublic’s lean operating model and market experiences. regional. “
MyRepublic Broadband currently holds six percent of Singapore’s broadband market share, with the proposed transaction designed to âconsolidate and strengthenâ StarHub’s local position, thereby expanding its presence to 40 percent.
Going forward, MyRepublic broadband customers will have access to enhanced offerings from StarHub’s consumer and enterprise groups, including products and services offering connectivity, over-the-top content and cloud gaming. .
âStarHub’s investment and partnership with us validates the vision of the digital transformation that we have decided to bring to the industry, in Singapore and beyond,â added Rodrigues. âEverything consumers and businesses love about MyRepublic is about to get even bigger and better thanks to the business and operational synergies of this partnership.
âMost importantly, this milestone propels us forward on MyRepublic’s journey to the IPO. With StarHub on board as a key investor, we are charting a new course for the long-term direction of the industry. “
Once the acquisition is finalized, MyRepublic Broadband will operate as a subsidiary of StarHub and the transaction is expected to close by December 2021.
The acquisition comes weeks after MyRepublic cited unauthorized access to a “third-party data storage platform” as the main cause of a data breach affecting 79,388 Singapore-based mobile subscribers.
As reported by Asia Channel, access took place on a platform used to store personal data of mobile customers and to mitigate risk, the ISP activated its Cyber ââIncident Response team – which includes a team of external advisors from KPMG – to “work in close collaboration” with the internal IT and network teams to resolve the incident.
According to a company statement, unauthorized access to the data storage facility has since been secured and the incident has been “contained.”
The breach, which took place on August 29 and was exposed to media on September 10, allowed hackers to potentially gain access to identity verification documents linked to customer applications for mobile services, affecting citizens of Singapore, permanent residents and holders of employment passes and dependents.
The information on display included scanned copies of both sides of the name of the accommodation, date of birth and home address from the National Registration Identity Card (NRIC), in addition to proof of registration documents. residential address – such as scanned copies of a utility bill – for affected foreigners.
According to the Singapore-based provider, there is no indication that the breach affected other personal data such as account or payment information, without any compromised systems and without operational impact on the company’s services.