YTL Power International Bhd managing director Datuk Yeoh Seok Hong
KUALA LUMPUR: Four mobile network operators (MNOs) have announced the completion of a share subscription agreement (SSA) with Digital Nasional Bhd (DNB) and the Ministry of Finance Incorporated (MoF Inc.) after fulfilling all the conditions in the conditional SSA.
The parties, namely YTL Power International Bhd
, CelcomDigi Bhd, Maxis Bhd and U Mobile Sdn Bhd, entered into the conditional SSA on Dec 1, 2023, to pave the way for the transition to the 5G dual wholesale network (DWN) model.
In a statement today, YTL Power International said the investment in DNB signifies the group’s commitment to play a leading role in driving Malaysia’s digital agenda and supporting the government’s vision for a 5G DWN environment which will deliver benefits to the nation.
Its managing director, Datuk Seri Yeoh Seok Hong said the company is fully supportive of the effective implementation of the 5G DWN model announced by the government, in line with its commitment to deliver world-class 5G services to the nation.
"We are ready to accelerate the successful rollout of 5G nationwide, which is the bedrock to leapfrog industries and drive economic growth,” he said.
Meanwhile, CelcomDigi also announced the completion of the SSA with DNB and MoF Inc. and entered into a shareholders’ agreement (SHA) for an equity stake in DNB.
CelcomDigi chief executive officer (CEO) Datuk Idham Nawawi said in a statement that the group is ready to lead the way in developing Malaysia’s second 5G network.
"We are eager to move into the next phase of transitioning to the 5G dual network model and participating in the upcoming process to build the second 5G network.
"We welcome a solution that benefits Malaysian consumers and the industry through a fair and transparent selection and transition mechanism that will promote healthy and equitable competition between the two 5G networks, and advance the technological and economic development of the country,” he said.
In a filing with Bursa Malaysia today, Maxis announced that Maxis Broadband Sdn Bhd has entered into an SHA with DNB, MoF Inc., YTL Power International, Infranation Sdn Bhd, and U Mobile Sdn Bhd.
"The SHA sets out the terms for the transition to a dual 5G network model, including a put and call option for MoF Inc. to sell its ordinary shares and transfer its shareholder advance in DNB,” it said.
In a statement, U Mobile CEO Wong Heang Tuck said the significant milestone reflects its full support of the government’s ambition to transition to a dual 5G network model to drive competition and ensure the sustainability of the telecommunications industry in Malaysia.
"With the strength of our track record, expertise and futureproofed network infrastructure, we believe we are well-positioned to roll out Malaysia’s second 5G network,” he said.
U Mobile’s base grew to over nine million subscribers at the end of 2023.
On June 20, DNB announced that all the conditions precedent under the conditional SSA on Dec 1, 2023, have been successfully met.
Under the terms of the SSAs, it is envisaged that the MNOs will collectively acquire a 70 per cent equity stake in DNB, with each MNO holding a 14 per cent stake.
The Malaysian government, represented by MoF Inc., will retain a 30 per cent stake and a Special Share in DNB for a designated period. - Bernama
