StarHub - CGS-CIMB Research 2023-12-13: Streamlining Its Cybersecurity Business

• On 13 Dec 2023, StarHub announced that it will divest its 56%-owned hardware security subsidiary D’Crypt to ST Engineering (SGX:S63). The purchase consideration is estimated by StarHub at S$87.4m in cash, which includes
  1. - Read this at SGinvestors.io -
  2. S$14.9m in adjustments for net cash and working capital, and
  3. S$5m earn-out consideration upon meeting of certain milestones.

StarHub will book a loss of ~S$10m on disposal of D’Crypt

• ST Engineering expects the transaction to be completed in 1Q24, following which StarHub will book a loss on disposal of ~S$10m (as per its 56% stake in D’Crypt).
• - Read this at SGinvestors.io -

Focusing more on driving Ensign’s platform-based solutions

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Kenneth TAN CGS-CIMB Research | LIM Siew Khee CGS-CIMB Research | https://www.cgs-cimb.com 2023-12-13 SGinvestors.io

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