StarHub and SCV Seal Merger Agreement
- Combined entity poised to up the ante in info-communications landscape -
Singapore, 15 May 2002 – StarHub and SCV today announced that they have signed a binding merger agreement, subject only to regulatory approvals, paving the way for completing the merger in late June 2002.
The five shareholders of the merged StarHub/SCV entity will be:
- Singapore Technologies Telemedia (ST Telemedia) – 50.47%
- NTT Communications Corporation (NTT Com) – 14.51%
- Media Corporation of Singapore (MediaCorp) – 14.07%
- British Telecommunications (BT) – 11.87% and
- Singapore Press Holdings (SPH) – 9.08%
The merger transaction is effected by SCV shareholders swapping their shares in SCV for new shares in StarHub. Therefore, SCV will be a wholly owned subsidiary of StarHub Pte Ltd when the merger is completed.
Value-added and synergistic services
The merger will result in a combined staff strength of over 2,800. The merger will bring together, StarHub’s fixed-line, mobile, international long-distance and Internet service business units, and SCV's cable TV and residential broadband Internet access businesses. Customers will benefit from a wider range of communications, entertainment, and information services, with greater convenience compared to services available from the two companies separately.
Said Mr Terry Clontz, President & CEO of StarHub, "The StarHub-SCV merger is a perfect fit. We are pleased that the merger agreement is now officially signed. Soon, Singaporeans can look forward to new services and a better alternative to their current residential local telephony service provider."
Mr Yong Lum Sung, President of SCV, said, "The merged entity will be a convenient one-stop service provider that offers a compelling range of cable TV, telecommunications and broadband interactive services cost-efficiently, benefiting home and business customers."
Customers can look forward to new and innovative bundled products and services from the merged entity. More information on how these new products and services will benefit the customers will be made known later. Customers with questions on the merger may direct their questions to firstname.lastname@example.org.
The merger is subject to the final approval of the InfoComm Development Authority of Singapore and the Singapore Broadcasting Authority. The closing of the merger is expected to take place in late June 2002, shortly after having received the requisite approvals from both authorities.
The Company expects to go for a public listing as soon as it is practical next year, provided that the window of opportunity and the right economic climate exist.
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