Maxis to complete DNB’s deal ahead of timeline

Maxis Bhd chief executive officer Goh Seow Eng.

PETALING JAYA: Maxis Bhd is ready to complete the Share Subscription Agreement (SSA) to hold an equity stake in Digital Nasional Bhd (DNB) for the rollout of fifth-generation (5G) network according to the terms stipulated.

DNB is a special-purpose vehicle company established in 2021 under the Finance Ministry and it is the sole owner of the 5G cellular network in the country.

In a statement, the telecommications company (telco) noted it was also prepared to sign the Shareholders Agreement (SHA) with DNB, thus putting it on track for an early completion of the process while it participates in the rollout of the second 5G network phase, ahead of the timeline announced by Communications Minister Fahmi Fadzil.

Maxis is one of the five telcos that signed the SSA to take up 14% each in the state-owned 5G network for RM233mil each in December last year.

The other four operators are CelcomDigi (via Infranation Sdn Bhd), U Mobile, Telekom Malaysia, and YTL Power International Bhd, whereby together they will take up a total 70% stake.

The remaining 30% equity will remain with the government under the Finance Ministry, which will hold a special share in DNB.

Maxis chief executive officer Goh Seow Eng said he was hopeful an early conclusion to the SSA will take place as it will provide greater certainty to Malaysia’s dual 5G network rollout.

“Completing the SSA process is a pragmatic and necessary step to commence the transition to dual 5G network.

“Maxis is fully prepared to start building the second 5G network immediately to accelerate the nation’s 5G plan and bring its economic benefits to Malaysians at a faster pace,” Goh pointed out.

According to Goh, Maxis is fully supportive of the government’s role in implementing the dual 5G network announced last year.

“We look forward to playing a major role in advancing Malaysia’s digital agenda as an active and key participant in the upcoming phase of the nation’s 5G rollout,” he said.

It said this includes promoting 5G and 5G-advanced adoption and innovation among consumers, businesses and the government sector.

Meanwhile, DNB has reiterated that its tender and procurement processes relating to the rollout have followed the strictest government standards and best practices.

DNB had denied allegations that it was not transparent in its internal operations while outright rejecting the notion of any impropriety in its governance.

This was in response to DNB not being able to reach a compromise with the five telecommunication companies after more than four months of negotiations.

It also noted the SSAs with the other telecos are all ongoing and it will continue to deliver one of the best-performing and most reliable 5G networks in the world on an accelerated basis and within cost.

Recently, DNB appointed new directors from the five telecommunication companies to its board as part of the process to complete a required due diligence.

DNB had said it looked forward to obtaining valuable input and direction from the newly constituted board in driving the advancement of Malaysia’s digital infrastructure and the adoption of 5G technology.