- Celcom Axiata Bhd, Digi Telecommunications Sdn Bhd, YTL Communications Sdn Bhd (YES), and Telekom Malaysia Bhd (TM) entered share subscription agreements (SSAs) today to acquire equity stakes in Digital Nasional Berhad (DNB).
The SSAs implement the MNOs’ 65% equity subscription in DNB, with the following stakes: Celcom Axiata (12.5%), Digi Telecommunications (12.5%), YTL Communications (20%), and TM (20%). The government will keep the remaining 35% and hold a Golden Share. The Golden Share gives many advantages and rights including the government’s ownership, sale, or transfer of shares.
In light of their impending merger, Digi Telecommunications and Celcom Axiata each possess 12.5% of the company’s shares. A single MNO is not permitted to own more than 20% of DNB under the provisions of the SSA and the parties’ agreed-upon governance structure, and in the event that the MNOs merge, the combined company is not permitted to own more than 25% of DNB.
This is a significant improvement after lengthy negotiations between the MNOs and DNB. The MNOs are expected to start offering 5G services to their customers in October 2022 and onward.
“I am pleased that the MNOs have taken up the equity offered by the Government and have executed their SSAs with DNB. All parties will now work towards completing the conditions precedent in the SSAs, including executing the Access Agreements as soon as possible. I expect that all parties will make every effort to deliver 5G availability to all their Malaysian and global ‘roaming’ customers. The MNOs, in particular, have a crucial role to play in ensuring the accelerated adoption of 5G among end users. Over the longer term, they will be responsible for bringing to market a host of new 5G-enabled products and services which will have a positive impact on many businesses, be it small, medium or large, as well as Government,”
— Yang Berbahagia Datuk Seri Asri Hamidon, DNB Chairman
Meanwhile, DNB will continue to speed the deployment of the 5G network and infrastructure, with a goal of achieving 80% coverage of inhabited regions by 2024.
“As of today, the 5G network has achieved 33% coverage of populated areas as against a target of approximately 40% by end-2022. The testing and integration of 5G sites by the MNOs have progressed well and I believe they are ready to provide 5G services to end-users located in areas where 5G infrastructure is currently available. In addition, the local 5G ecosystem has grown rapidly, with 12 device brands now offering more than 100 5G-compatible models for use in Malaysia. As such, we are encouraged by the establishment of the infrastructure to facilitate the rapid adoption of 5G by the Rakyat, businesses, and Government,”
— added Seri Asri Hamidon