MNOs execute share subscription agreements with DNB


KUALA LUMPUR: Celcom Axiata Bhd, Digi Telcommunications Sdn Bhd, YTL Communications Sdn Bhd and Telekom Malaysia Bhd (TM) have executed share subscription agreements (SSA) to take up equity stakes in Digital Nasional Bhd (DNB).

In a statement issued by DNB, it said the four MNOs will have a subscription of 65% equity in DNB with 12.5% stake each held by Celcom Axiata and Digi and 20% stake each owned by YTL Communications and TM.

The government will retain ownership of the remaining 35% and hold a Golden Share, which grants various rights and privileges and covers areas such as ownership, sale or transfer of shares on the part of the government.

According to DNB, the 12.5% shareholding each in Celcom Axiata and Digi is in recognition of their imminent merger, as under the term of the SSA and the agreed governance structure between the parties no single MNO can hold more than a 20% stake in DNB.

In the event of the merger between Celcom Axiata and Digi, the merged entity cannot hold more than a 25% shareholding in DNB, it said.

DNB said it anticipates the mobile network operators (MNO) will make 5G services available to their end users from October 2022 onwards.

"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,” said DNB chairman Datuk Seri Asri Hamidon.

Meanwhile, DNB said it will continue to deploy the 5G network and infrastructure on an accelerated schedule, with a target of 80% coverage of populated areas by 2024.

Asri said the 5G network has achieved 33% coverage of populated areas against a target of about 40% by end-2022.

He added that testing and integration of 5G sites by the MNOs have progressed well and should be ready to provide 5G services to end-user in areas where 5G infratructure 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,” he said.

Article type: free
User access status:
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

DNB , MNO , 5G

   

Next In Business News

Financial planners urged to embrace technology to better serve clients
KL shares flat at midday
Elon Musk briefly loses top spot on Forbes billionaire list
Asia stocks edge up despite global growth worries
Malaysian banks remain steadfast in supporting economic recovery
Ringgit opens higher against US dollar
Muhibbah gets to increase orderbook with PETRONAS Carigali job
Quick take: KNM falls 10% in active trade over default concerns
FBM KLCI little changed in early trade
Trading ideas: Gamuda, QES Group, Wah Seong, Muhibbah, Sunview, KNM

Others Also Read