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Today, Digital Nasional Berhad (DNB) is pleased to announce that the Share Subscription Agreements (SSAs) are ready to be completed by the four mobile network operators (MNO) in Malaysia. Of course, this includes CelcomDigi Berhad through Information Sdn Bhd, Maxis Broadband Sdn Bhd, U Mobile Sdn Bhd and YTL Communications Sdn Bhd through YTL Power International Bhd.
On 1 December 2023, DNB and the Minister of Finance (Incorporated) (MoF Inc.) entered into SSAs with five MNOs, thereby enabling the MNOs’ participation in DNB through equity ownership. DNB is pleased to confirm that all the conditions precedent under the SSAs have been successfully met on 20 June 2024.
With this step completed, the SSAs are poised for completion by the end of June 2024 for all the MNOs, apart from Telekom Malaysia Berhad (TM), to increase their equity stake in DNB. The long stop date for TM is 21 August 2024, for it to seek its shareholders’ approval, by its governance requirements.
Under the terms of the SSAs, 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, represented by MoF Inc., will retain a 30% stake and a Special Share in DNB for a designated period.
In a Bursa Malaysia filing, CelcomDigi said all conditions precedent in the conditional SSA it entered into with the MoF Inc and DNB on 1 December 2023 have been met. This announcement confirms CelcomDigi’s decision to be a shareholder in DNB.
On the other hand, U Mobile believes the company is in an optimal position to roll out the second 5G network. Apart from that, the orange telco will also explore use cases to demonstrate the benefits of 5.5G as part of its efforts to support the country’s digital roadmap. It recently completed a 5G private network proof-of-concept (PoC) for the logistics industry where the telco worked with a partner to digitise container inspection.
The Ministry of Communications, Malaysia had announced earlier that the selection process to build and operate Malaysia’s second 5G network will commence upon the completion of the SSA(s). In achieving this milestone, all the telcos are in full support of the Government’s vision for the 5G Dual Network (5G DN) transition.
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