DNB hits key milestone in agreements with Malaysian mobile network operators

• Terms precedent under Share Subscription Agreements successfully met
• TM given until 21 Aug to seek shareholders’ nod, following its governance

Digital Nasional Bhd (DNB) has announce an important milestone with respect to the Share Subscription Agreements (SSA) with four mobile network operators (MNO) in Malaysia, namely CelcomDigi Bhd through Infranation Sdn Bhd, Maxis Broadband Sdn Bhd, U Mobile Sdn Bhd and YTL Communications Sdn Bhd through YTL Power International Bhd.

On 1 Dec 2023, DNB and the Minister of Finance (Incorporated) (MoF Inc) entered SSAs with five MNOs, thereby enabling the MNOs’ participation in DNB through equity ownership. In a statement issued yesterday, DNB confirmed that all the conditions precedent under the SSAs have been successfully met on 20 June. According to DNB, with this crucial step completed, the SSAs are poised for completion by the end of June 2024 for all the MNOs, apart from Telekom Malaysia Bhd (TM), to increase their equity stake in DNB. The long stop date for TM is 21 Aug 2024, for it to seek its shareholders’ approval, in accordance with 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 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.

As the parties move towards the completion of the SSAs, DNB said it remains committed to driving technological innovation and expanding digital services across the country, fostering a more connected and digitally empowered Malaysia.