U Mobile’s exit from DNB clears the path for its full commitment to the second 5G network.
KUALA LUMPUR: CelcomDigi Bhd
, Maxis Bhd, YTL Power International Bhd and the Ministry of Finance (Inc) (MoF Inc) will collectively acquire U Mobile Sdn Bhd’s entire stake in Digital Nasional Bhd (DNB) for a total of RM100,000.
Under the agreement, the four parties will each acquire a portion of U Mobile’s 100,000 shares in DNB at RM1 per share, with the transaction expected to be completed by May 30, 2025, according to filings by CelcomDigi and Maxis yesterday.
Maxis, CelcomDigi and YTL Power will each acquire 33,333 shares in DNB from U Mobile , while MoF Inc will take up the remaining one share.
Post-acquisition, MoF Inc will retain a 41.67% stake in DNB, while each of the three companies will hold 19.44%.
DNB, established by the government in 2021, serves as the special-purpose vehicle to roll out Malaysia’s first nationwide 5G network under a single wholesale model.
The equity restructuring follows the government’s May 2023 decision to transition to a dual 5G network model to foster industry competition and ensure long-term infrastructure sustainability.
U Mobile’s exit from DNB clears the path for its full commitment to the second 5G network, for which it was appointed the lead deployer by the government in November 2023.
The company announced last month that it had appointed China-based Huawei Technologies Co Ltd and ZTE Corp as its technology partner for the 5G rollout, and with EdgePoint Infrastructure Sdn Bhd for in-building 5G coverage.
Huawei will lead deployment efforts in West Malaysia, while ZTE will oversee the rollout in East Malaysia.
U Mobile aims to achieve 80% coverage of populated areas within the first 12 months of deployment, and 90% coverage within the following year.
Separately, Maxis clarified yesterday that the MoF Inc holds a put option to sell its shares and shareholder advances in DNB within one month after Nov 12, 2025, or on another date mutually agreed upon.
“In the event MoF Inc fails to exercise the put option within the said period, the put option shall lapse,” it said.
“YTL Power, CelcomDigi, and Maxis Broadband may (then) exercise (their) call option within one month after the lapse of the extended put option, failing which the call option shall (also) lapse.”
Shares of CelcomDigi and Maxis each rose one sen yesterday to close at RM3.90 and RM3.79, respectively, while YTL Power added nine sen to end at RM3.68.
