KUALA LUMPUR, CelcomDigi Bhd, Maxis Bhd and YTL Power International Bhd have each provided additional shareholder advances of RM116.67 million to Digital Nasional Bhd (DNB) to fund the state-owned 5G wholesaler’s operations and working capital needs, as Malaysia transitions to a dual 5G network model.
The fresh capital injection follows U Mobile Sdn Bhd’s exit from DNB’s shareholder line-up, with its 100,000 shares redistributed among CelcomDigi, Maxis, YTL Power and the Minister of Finance Inc (MOF Inc). U Mobile has been tasked with building the country’s second 5G network.
According to bourse filings, the latest advances bring CelcomDigi’s, Maxis’s and YTL Power’s total investments in DNB to RM350.03 million each, comprising earlier contributions of RM233.23 million plus the new RM116.7 million tranche. Each company now holds a 19.44% stake in DNB, while MOF Inc remains the largest shareholder with a 41.67% interest and RM750.3 million in combined equity and advances, including a RM250.2 million government loan.
Under the shareholder agreement, every ringgit of advance carries the same rights as an ordinary share, including voting privileges. The advances are interest-free and only repayable by mutual agreement, though they may also be treated as prepayments under access agreements with DNB.
Risks Ahead for Dual 5G Rollout
CelcomDigi cautioned that the entry of U Mobile as a second network operator could affect DNB’s revenue if telcos divert traffic to the new provider. DNB may also require more funding to sustain rollout momentum and maintain service quality, it added.
To mitigate risks, DNB has set up a steering committee with regular reporting to shareholders. Both CelcomDigi and Maxis noted that the latest advances will not materially impact their earnings, net assets or gearing.
On Friday, CelcomDigi’s shares closed seven sen or 1.82% lower at RM3.77, valuing the group at RM44.23 billion. Maxis eased three sen or 0.85% to RM3.48, giving it a market cap of RM27.27 billion, while YTL Power slipped two sen or 0.47% to RM4.20, with a market value of RM36.18 billion.
