DNB agreement: YES and TM take 20% equity stake each while Digi and Celcom take 12.5% each

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Following some 2 years of negotiations, 4 mobile network operators (MNOs) have executed share subscription agreements (SSAs) for a total of 65 per cent equity stake in Digital Nasional Berhad (DNB). The four MNOs are YTL Communications Sdn Bhd (YES), Telekom Malaysia (TM), Digi Telecommunications Sdn Bhd (Digi) and Celcom Axiata Bhd (Celcom). 

As reported by Bernama, DNB in a statement yesterday announced that Celcom and Digi have taken a 12.5 per cent stake each while YES and TM took a 20 per cent stake each. As for the remaining 35 per cent stake, DNB said that it has been retained by the government, which will hold a golden share. 

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Furthermore, DNB announced that it will grant various rights and privileges and cover areas such as ownership, sale, or transfer of shares on the part of the government. Besides that, DNB also revealed that under the terms of the SSA, no single MNO can hold more than a 20 per cent stake and in the event of a merger (which Digi and Celcom are in the midst of), the merged entity can only hold 25 per cent stake in DNB. 

Notably, two other major MNOs in Malaysia are absent from the agreement, namely Maxis and U Mobile. Both have decided to not take up stakes in DNB but will instead only subscribe to its services. As for the SSA, DNB views its execution as a positive development and anticipated that the MNOs will make 5G services available to end users from this month onwards. 

DNB chairman Datuk Seri Asri Hamidon said as of today, the 5G network has achieved 33 per cent coverage of populated areas against a target of about 40 per cent by the end of the year. He further elaborated that the testing and integration of 5G sites by the MNOs have progressed well and they are ready to provide 5G services to end-users in areas where 5G infrastructure is currently available. Moreover, the local 5G ecosystem has also grown rapidly, with 12 device brands now offering more than 100 5G-compatible models for use in our country.

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