KUALA LUMPUR: Digital Nasional Bhd (DNB) has confirmed that all the conditions precedent under the Share Subscription Agreements (SSA) were successfully met on 20 June 2024.
It emphasised the importance of this milestone with respect to the SSA with 4 mobile network operators (MNO) in Malaysia, namely CelcomDigi Bhd through Infranation Sdn Bhd, Maxis Broadband Sdn Bhd, U Mobile Sdn Bhd and YTL Communications Sdn Bhd through YTL Power International Bhd.
“With this crucial step completed, the SSAs are poised for completion by the end of June 2024 for all the MNOs, apart from Telekom Malaysia Bhd (TM) to increase their equity stake in DNB,” it said in a statement.
On 1 December 2023, DNB and the Minister of Finance (Incorporated (MoF Inc) entered into SSA with 5 MNOs, enabling the MNOs’ participation in DNB through equity ownership.
The long stop date for TM is 21 August 2024, for it to seek its shareholders’ approval in accordance with its governance requirements.
Under the terms of the SSA, it is envisaged that the MNOs will collectively acquire a 70% equity stake in DNB with each MNO holding a 14% stake.
The Malaysian government through MoF Inc, will retain a 30% stake and a Special Share in DNB for a designed period.
As the parties move towards the completion of the SSAs, DNB remains committed to driving technological innovation and expanding digital services across the country, fostering a more connected and digitally empowered Malaysia.
Meanwhile, in a filing with Bursa Malaysia, CelcomDigi Bhd announced its readiness to complete the conditional SSA and commence the process of building Malaysia’s second 5G network.
The company also mentioned that all conditions precedent in the conditional SSA it entered into with MoF Inc and DNB on 1 December 2023 have been met.
“We will work closely with the government and the Malaysian Communications and Multimedia Commission (MCMC) on the dual network transition plan for the second 5G network toward a fair, transparent and consultation process.
“We hope to have an outcome that equitably balances the economic and market impact, that benefits that government and industry and more importantly Malaysian customers and businesses,” said CelcomDigi Chief Executive Officer Datuk Idham Nawawi.
Additionally, U Mobile also said it is well-positioned to roll out the second 5G network if need be, solely to help the government realise its ambition of having 2 5G networks to drive competition and ensure the sustainability of the telecommunications ecosystem in Malaysia.
Its CEO Wong Heang Tuck said that the company will also explore use cases to demonstrate the benefits of 5.5G as part of its efforts to support the country’s digital roadmap.
