StarHub Acquires Remaining 49.9% Stake in MyRepublic Broadband for S\$94.3 Million

Key Transaction Details

• Acquisition Date: 11 August 2025
• Acquirer: StarHub Online Pte. Ltd., a wholly-owned subsidiary of StarHub Ltd
• Target: MyRepublic Broadband Pte. Ltd. (“MR Broadband”)
• Shares Acquired: 2,162,317 issued ordinary shares, representing 49.9% of MR Broadband’s total issued shares
• Post-Transaction Ownership: StarHub Online’s stake in MR Broadband increases from 50.1% to 100%, making MR Broadband a wholly-owned indirect subsidiary of StarHub
• Consideration: S\$94,324,500

Shareholder-Relevant Insights & Price-Sensitive Information

• Full Ownership: The acquisition consolidates MR Broadband under StarHub, potentially enhancing operational efficiency, decision-making, and integration of broadband offerings.
• Deal Valuation: The purchase price of S\$94.3 million was negotiated on a willing buyer, willing seller basis, taking into account MR Broadband’s historical financial performance and growth potential.
• Funding Structure: The acquisition was funded through a mix of internal cash resources and the set-off of an outstanding loan owed by MyRepublic Holdings Ltd (“MR HoldCo”) to StarHub Online. This structure minimizes cash outflow and leverages existing financial arrangements.
• Financial Health of MR Broadband: According to unaudited financial statements for the year ended 31 December 2024, the net asset value attributable to the acquired shares and business-related assets of MR Broadband is negative S\$0.60 million. This negative net asset value is noteworthy for investors, reflecting potential short-term balance sheet impacts, but may be offset by anticipated long-term synergies and growth opportunities.
• Potential Impact on Share Price: The move could be price-sensitive due to the full consolidation of MR Broadband’s performance into StarHub’s financials, anticipated operational synergies, and improved strategic control over broadband services. However, investors should also consider the negative net asset value and the size of the acquisition relative to StarHub’s balance sheet.

Strategic Rationale

This acquisition aligns with StarHub’s strategic goal of strengthening its broadband market position in Singapore. By becoming the sole owner of MR Broadband, StarHub can fully integrate MR Broadband’s operations, technology, and customer base, potentially accelerating growth and improving customer offerings. The transaction also removes minority interest complexities, allowing for more streamlined decision-making and potential cost synergies.

Additional Information

• The acquisition was previously announced on 12 August 2025, with additional details available in that announcement.
• StarHub’s funding approach (internal resources and loan set-off) may reduce immediate capital strain and reflect prudent financial management.

Conclusion

In summary, StarHub’s acquisition of the remaining stake in MR Broadband is a significant development that consolidates its market position and may deliver long-term shareholder value. However, the negative net asset value of the acquired entity and the substantial acquisition price are factors for investors to monitor closely as they assess the impact on StarHub’s future financial performance and share price.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own analysis and consult with professional advisors before making investment decisions based on this news.

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