KUALA LUMPUR – Three mobile network operators (MNOs) have announced the completion of a share subscription agreement (SSA) with Digital Nasional Bhd (DNB) and the Ministry of Finance Incorporated (MoF Inc) after fulfilling all the conditions in the conditional SSA.
The parties, namely YTL Power International Bhd, CelcomDigi Bhd and Maxis Bhd, entered into the conditional SSA on December 1, 2023, to pave the way for the transition to the 5G dual wholesale network (DWN) model.
In a statement today, YTL Power International said the investment in DNB signifies the group’s commitment to play a leading role in driving Malaysia’s digital agenda and supporting the government’s vision for a 5G DWN environment, which will deliver benefits to the nation.
Its managing director, Datuk Seri Yeoh Seok Hong, said the company is fully supportive of the effective implementation of the 5G DWN model announced by the government, in line with its commitment to deliver world-class 5G services to the nation.
“We are ready to accelerate the successful roll-out of 5G nationwide, which is the bedrock to leapfrog industries and drive economic growth,” he said.
Meanwhile, CelcomDigi also announced the completion of the SSA with DNB and MoF Inc and entered into a shareholders’ agreement (SHA) for an equity stake in DNB.
CelcomDigi chief executive officer Datuk Idham Nawawi said in a statement that the group is ready to lead the way in developing Malaysia’s second 5G network.
“We are eager to move into the next phase of transitioning to the 5G dual network model and participating in the upcoming process to build the second 5G network.
“We welcome a solution that benefits Malaysian consumers and the industry through a fair and transparent selection and transition mechanism that will promote healthy and equitable competition between the two 5G networks, and advance the technological and economic development of the country,” he said.
In a filing with Bursa Malaysia today, Maxis announced that Maxis Broadband Sdn Bhd has entered into an SHA with DNB, MoF Inc, YTL Power International, Infranation Sdn Bhd, and U Mobile Sdn Bhd.
“The SHA sets out the terms for the transition to a dual 5G network model, including a put and call option for MoF Inc to sell its ordinary shares and transfer its shareholder advance to DNB,” it said.
On June 20, DNB announced that all of the conditions precedent to the conditional SSA on December 1, 2023, had been met successfully.
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. – June 28, 2024