- According to an article published in The Edge, StarHub (SGX:CC3) and M1 are exploring a potential merger of their businesses. StarHub has declined to comment on this news, hence the article is highly speculative at this stage. However, we think Keppel (SGX:BN4) might consider selling M1.
- - Read this at SGinvestors.io -
Assuming that StarHub can acquire M1 at 7-8x EV/EBITDA using 100% debt financing.
StarHub’s earnings could benefit by 16%-37% over FY25F- 27F due to synergies with M1 on our estimates.
- - Read this at SGinvestors.io -
- With average revenue per user (ARPU) declining by ~32% (post-paid mobile) since 2017 for StarHub, a merger could support stabilisation and operational improvements.
We assume that M1 can be acquired at 7-8x EV/EBITDA.
- Read more at SGinvestors.io.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Sachin MITTAL DBS Group Research | Pei Hwa HO DBS Research | https://www.dbs.com/insightsdirect/ 2024-05-14
