The situation with Malaysian 5G wholesale operator, Digital Nasional Bhd (DNB), changed recently when four telco investors agreed to take slightly larger stakes in the company until August.
DNB announced that Maxis, U Mobile, YTL, and CelcomDigi's Infranation have agreed to each take a 16.3% share in the operator, totaling 65.1% collectively.
Originally, the plan was for these telcos, along with Telekom Malaysia (TM), to each hold a 14% stake, accumulating 70% collectively. However, TM couldn't complete its agreement until August, consequently, DNB gave the other four telcos higher stakes provisionally. The Ministry of Finance (MOF) owns the remaining 34.9% stake in DNB, along with a Special Share for a specific period. This change is a precaution should TM's shareholders reject the agreement.
Related: Malaysia's Ministries Collaborate on Second 5G Network Plan
TM has until August 21, 2024, to finalize the process. If TM's shareholders approve, everything will revert back to the original plan with the five telcos owning 70% and the MOF holding the remaining 30%. As per the agreement, each telco will purchase 100,000 shares in DNB at MYR 1 per share and provide MYR 233.3 million (USD 49.2 million) in shareholder advances.
Maxis, U Mobile, YTL, and CelcomDigi now have a month to decide if they will remain stakeholders in DNB or join Malaysia's planned second 5G network. The entities have the option to leave DNB to participate in the second network without being required to take an equity stake, and all four telcos have expressed interest in joining this endeavor.
Also Read: Telcos Face 20-Day Deadline to Finalize Investments in Malaysia's 5G Network
CelcomDigi's CEO, Datuk Idham Nawawi, stated that the telco is excited to transition to the 5G Dual Network model and participate in building the second 5G network. He believes that CelcomDigi's experience in network deployments and the significant investment in CapEx positions them well to lead the development of Malaysia's second 5G network.
Continue Reading: Malaysia Set to Unveil Plans for Second 5G Network
Related: Malaysia to Allow Second 5G Network in Response to Concerns
Telecom Review Asia Exclusive Analysis: Malaysia's Leap into the Digital Future
