In addition to equity, StarHub has agreed to refinance $74.2 million of debt for MyRepublic for a period of three years, on completion of the transaction. MyRepublic will retain the remaining 49.9% stake and its senior management team, helmed by co-founder and CEO Malcolm Rodrigues.
StarHub will acquire a majority interest in a new entity that will hold MyRepublic’s broadband business in Singapore, according to a filing to the Singapore Exchange on Sept 22.
StarHub’s total investment will be up to $162.8 million. An initial consideration of $70.8 million will be paid by StarHub for 50.1% of the shares in the new entity, MyRepublic Broadband, while a deferred consideration of up to $92 million will be paid if future financial performance matrices are met.
