StarHub agreed to acquire a 60 percent stake in HKBN Jos (Singapore) and HKBN JOS (Malaysia) from HKBN, for a total consideration of SGD 15 million. JOS Singapore and JOS Malaysia serve close to 1,500 government entities and blue-chip companies across industries such as banking, beverage, electronics, healthcare, media, and retail. Both companies deliver computing, IT maintenance and IT infrastructure support services.
Following StarHub’s investment in Strateq in July 2020, the acquisitions of JOS Singapore and JOS Malaysia are expected to accelerate the execution of its DARE+ strategy, the next stage of its five-year transformation. The addition of JOS is also expected to generate cost synergies in fixed operating costs and improved supply chain, between StarHub and JOS SG as well as between Strateq and JOS MY.
Pro forma for these acquisitions for the nine-month period ended 30 September, JOS Singapore and JOS Malaysia will contribute SGD 86 million to StarHub’s Enterprise Business revenue, which would amount to SGD 610 million for the financial period. JOS Singapore and JOS Malaysia would collectively contribute 14 percent of StarHub’s overall Enterprise Business revenue for the same period.
The overall partnership between StarHub and HKBN is expected to boost revenue and profits through cross-selling and upselling of capabilities, connectivity as well as solution offering, to add value to corporate customers across Singapore, Malaysia, and Hong Kong, StarHub also said.
StarHub and HKBN plan to boost collaborations including the provision of telecommunications services, such as international services, backhaul and local network services, fixed-line voice services and mobile services. StarHub and HKBN will also look at opportunities for the co-development of ICT solutions and services.
Upon completion of the proposed acquisition, JOS Singapore and JOS Malaysia will be majority-owned by StarHub. The transaction will be funded by StarHub’s internal resources, and is scheduled for completion by year-end.
