StarHub announced on Aug 12 that it would buy the rest of MyRepublic broadband business, along with related operational assets, for $105.2 million. The transaction will be funded with cash, after setting off $74.2 million in debt owed by MyRepublic Holdings, resulting in a net cash outlay of $31 million.
RHB Bank Singapore (RHB) is keeping its “neutral” call on StarHub with an unchanged target price of $1.14 after the telco moved to acquire the remaining 49.9% stake in MyRepublic’s broadband business.
It estimates the deal will add less than 5% to earnings despite strengthening StarHub’s dominance in fibre broadband (FBB), a core pillar of its multi-brand, multi-segment approach.
