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S'pore regulator okays SCV-StarHub tie-up

The Singapore Broadcasting Authority (SBA) has agreed to let the shareholders of StarHub-SCV exceed the 3 percent share ownership mark, paving the way for the merger of the companies.

SINGAPORE--The Singapore Broadcasting Authority (SBA) has agreed to let the shareholders of StarHub-SCV exceed the 3 percent share ownership mark, paving the way for the merger of the companies.

In April, it was reported that both companies were negotiating to form a company worth S$3 billion. However, the shareholders had to seek SBA approval to allow them to hold more than 3 percent of the ordinary shares in a broadcasting company.

StarHub, which provides mobile, long-distance, fixed-line and Internet services, must create an island-wide residential network to fulfill licensing obligations.

The Info-communications Development Authority of Singapore (IDA) has approved the telco's plan to piggyback on SCV's cable network to provide its telephone services.

SCV, the island's only cable TV operator, has spent S$600 million to cable up the whole island.

Before the merger can take place, however, The Straits Times reported that SPH shareholders have to back the plan, and the IDA must also give its blessing.