StarHub has acquired a 60% stake in HKBN JOS (Singapore) and HKBN JOS (Malaysia) for a total consideration of $15 million.
The telco, on Nov 10, signed an agreement with Hong Kong-listed HKBN.
HKBN JOS (Singapore) and HKBN JOS (Malaysia) have over 30 years of success in the information and communications technology (ICT) market.
Today, they serve close to 1,500 government entities and blue-chip companies across several industries including banking, beverage, electronics, healthcare, media and retail.
Both companies also have deep expertise in delivering end-user computing, IT maintenance and IT infrastructure support services.
The acquisitions follow StarHub’s investment in Strateq in July 2020. The newly-acquired companies are said to accelerate the execution of StarHub’s DARE+ strategy.
It will further strengthen the telco’s ICT capabilities, enterprise solution offerings and customer footprint across Singapore and Malaysia.
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On a pro forma basis, the acquisitions for the 9MFY2021 ended September will contribute $86 million to StarHub’s enterprise business revenue.
See: StarHub posts 9.5% lower earnings of $40.2 mil in 3QFY21
HKBN JOS (Singapore) and HKBN JOS (Malaysia) would contribute 14% of StarHub’s overall enterprise business revenue for the same period.
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“Our enterprise business has been achieving strong double-digit year-on-year growth, as we empower our customers’ transformation efforts with our cybersecurity, regional ICT and network solutions. We intend to accelerate our enterprise growth, by deepening our capabilities in Singapore as well as extending these enterprise digital services capabilities across the region,” says StarHub CEO Nikhil Eapen.
“With HKBN JOS (Singapore) and HKBN JOS (Malaysia) onboard to complement our prior acquisition of Strateq, our strategy is well underway. We also look forward to working closely with HKBN, to open up business opportunities for both companies in the provision of bundled connectivity and ICT services, delivering real value to our customers across our respective markets and creating significant business synergies,” he adds.
“On a strong foundation of technical excellence and silo-less teamwork, HKBN JOS (Singapore) and HKBN JOS (Malaysia) delivered outstanding business results. We believe they will enjoy even greater synergy upside and growth potential to be backed by both StarHub and HKBN. We are also excited to forge deeper partnership with StarHub across a wide range of network and ICT services for mutual growth,” say NiQ Lai, HKBN co-owner & Group CEO and Almira Chan, HKBN co-owner & chief strategy officer and head of Beyond Hong Kong of HKBN JOS.
“This bolsters HKBN’s and StarHub’s ICT leadership positions in our respective markets to support enterprises customers expanding into the region,” they add.
Upon completion of the proposed acquisition, HKBN JOS (Singapore) and HKBN JOS (Malaysia) will be majority-owned by StarHub. The transaction will be funded by StarHub’s internal resources.
Shares in StarHub closed 1 cent lower or 0.79% down at $1.26 on Nov 10.