StarHub’s acquisition of a 49.9% stake in MyRepublic (MR) is a strategic decision to affirm its stranglehold in fibre broadband (FBB) – an integral component of its multi-brand, multi-segment approach.
- Read this at SGinvestors.io -
Fully consolidates MyRepublic; reinforces its No 1 fibre broadband revenue share.
In a swift move largely seen as a tactical response to the Simba-M1 deal, StarHub had on 12 Aug announced the acquisition of the remaining 49.9% stake in MyRepublic together with related operational assets for S$105.2m. The consideration will be funded via cash and after setting-off S$74.2m in debt owing by the vendor (MyRepublic Holdings) with a net cash outlay of S$31m.
- Read this at SGinvestors.io -
StarHub currently ranks No 1 for broadband revenue share and has the second largest fibre broadband subs after incumbent Singtel (SGX:Z74). According to management, the consolidation reinforces the group’s leadership in the fibre broadband space with full ownership and access to MyRepublic’s brand equity which should in turn drive greater value creation for customers.
Fibre broadband is at the core of the Infinity play strategy.
Read more at SGinvestors.io.
Above is an excerpt from a report by RHB Securities Research. Clients of RHB may be the first to access the full PDF report @ https://www.rhbtradesmart.com/.
