IMDA's ruling on StarHub-MyRepublic deal will signal regulator tolerance for consolidation

Singapore

AMONG the hurdles StarHub has to clear before it can buy a controlling stake in MyRepublic's broadband business is the go-ahead from the Infocomm Media Development Authority (IMDA). The IMDA's ruling could be a signal of the regulator's appetite for continued consolidation in the industry - but telcos might still be hard-pressed to strike similar deals, watchers said.

Mainboard-listed telco StarHub last week announced plans to take a 50.1 per cent stake in MyRepublic's Singapore broadband business for up to S$162.8 million, with the option of pursuing full ownership in future.