SMTtrack-led 5G consortium is in final stage to secure maiden project from DNB

KUALA LUMPUR: The recently established consortium to finance 5G projects and 5G Infra Tech Solution Sdn Bhd have yet to secure any related projects from Digital National Bhd (DNB) and Malaysian Communications and Multimedia Commission (MCMC) following their corporate exercises announcement this week.

Jiankun International Bhd, which was one of the five listed companies that participated in the SMTrack Bhd-led consortium, however, stressed that there is a memorandum of agreement (MoA) signed between 5G Infra Tech with Ennova Sdn Bhd.

Under the MoA, 5G Infra Tech and Ennova shall perform a joint venture on the network-related project.

Ennova is in the final stage of securing 350 telecommunication towers contract to be leased to DNB and will kick-start the project upon finalisation of the definitive agreement with 5G Infra Tech and/or the consortium.

In a reply to Bursa Malaysia’s queries for additional information regarding the 5G investment, Jiankun said the joint venture agreement shall be concluded no later than three months from the date of the MoA.

The MoA is for one year from Jan 14, 2022.

Jiankun also expects a definitive agreement will be inked in three months following the heads of agreement (HoA) between the consortium participants and 5G Infra Tech.

However, the details and issue price of the redeemable convertible preference shares (RCPS) in 5G Infra Tech have not been determined at this juncture.

It had also yet to determine the estimated total capital/investment required to be committed by Jiankun in connection with the Investment.

‘’The percentage equity interest of the parties in the consortium has not been determined at this juncture.

The Investment should be based on the percentage equity interest in the consortium. However this has not been determined at this juncture,’’ it noted.

Jiankun also clarified that 5G Infra Tech is involved in the activities of providing consultants other than architecture, engineering, and management consultants, engineering services as well as export and import of a variety of goods without any particular specialisation.

5G Infra Tech is in the midst of adding their business activities to include the contractor for telecommunication infrastructure, it added. - Bernama