Digital Nasional Berhad (DNB) has reportedly begun a corporate restructuring process that involves revising its business plan, funding strategy, and operational framework, along with implementing new cost-saving measures, the Digital Ministry announced.
The Digital Ministry explained that the shift from the initial single wholesale network (SWN) model to a dual 5G network system has necessitated major adjustments to DNB’s operations. It also noted that DNB is collaborating closely with its telecommunications shareholders and industry experts to ensure the company’s long-term viability.
“This approach will foster healthy competition and enhance the quality of telecommunications services,” the Digital Ministry stated.
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The Digital Ministry revealed that the government currently holds a 34.9% equity stake in DNB, along with a golden share in the company. As part of the transition to the dual 5G model, and in line with the DNB shareholders' agreement, the government will be compensated for its shares and will transfer ownership to the telco’s shareholders.
Reportedly, the government's loan injection into DNB will be repaid by the telco’s shareholders, with interest. The government-backed loans may also be refinanced, effectively removing the government's guarantee obligations.
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