Singapore telecoms firm StarHub, SCV agree to merge

Singapore telecoms firm StarHub, SCV agree to merge

Singapore telecommunications operator StarHub Pte. Ltd. and cable operator Singapore Cable Vision (SCV) said Wednesday they have agreed to merge.

Under the deal, SCV will become a unit of the telecoms operator when the merger is completed next month, the statement said.

"The merger transaction is effected by SCV shareholders swapping their shares in SCV for new shares in StarHub," the statement said.

The merger, if approved by the regulatory bodies concerned, will offer a range of services from mobile phone lines, broadband Internet access and international long-distance calls from a staff strength of over 2,800.

"The StarHub-SCV merger is a perfect fit," said StarHub chief executive and president Terry Clontz.

SCV president Yong Lum Sung 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."

The two companies said they would list the merged entity when the timing is right. No further details were given.

Singapore Technologies Telemedia (STT) will be the biggest of five shareholders with a 50.47 percent stake in the merged entity followed by Japan's NTT Communications at 14.51 percent.

Media Corporation of Singapore will have a 14.07 percent stake, British Telecommunications (BT) 11.87 percent and Singapore Press Holdings (SPH) 9.08 percent.

SCV, the island's sole cable operation, is currently owned by STT, Media Corporation of Singapore and SPH.

StarHub, one of Singapore's three main telecoms firms, is owned by NTT, BT, and STT.

The merger is subject to approval from the InfoComm Development Authority of Singapore and the Singapore Broadcasting Authority -- AFP.