Business

Telcos express interest in DNB equity stake offer

Maxis, Celcom Axiata, Digi Telecommunications, U-Mobile release joint statement

Updated 2 years ago · Published on 25 Mar 2022 11:50AM

Telcos express interest in DNB equity stake offer
Maxis is among four telecommunications giants that have said they would like to explore the proposal with the Finance Ministry and Communications and Multimedia Ministry. – The Vibes file pic, March 25, 2022

KUALA LUMPUR – Malaysia’s major mobile network operators (MNO) have collectively expressed their official interest to the Finance Ministry and Communications and Multimedia Ministry in the equity stake offer for Putrajaya’s special purpose vehicle in 5G Digital Nasional Bhd (DNB).

In a joint press statement yesterday, telecommunications giants Maxis, Celcom Axiata, Digi Telecommunications, and U-Mobile said that they would like to “further understand and explore” the proposal.

“As part of the expression of interest, the MNOs would like to discuss and seek input from the government on the details of the proposed equity stake offer.

“The MNOs are keen to collaborate with MoF/K-KOMM and look forward to an approach that is typical of any major mergers-and-acquisitions process.

“The MNOs have recommended setting up project teams to align on processes such as due diligence, transaction timelines, and other administrative matters,” said the statement.

On March 20, Communications and Multimedia Minister Tan Sri Annuar Musa said that the Finance Ministry will begin a series of negotiations and offers to telecommunication companies that hold equity in Digital Nasional Bhd (DNB).

The process is expected to be completed in June.

“MoF will deal with issuing offers to all companies with experience in spectrum management.

“If I’m not wrong, seven or nine companies have been given spectrums to manage the telecommunications service. They have been offered to begin negotiations and purchase shares at determined prices, and we hope they will expedite the negotiations,” he said in Kota Baru, Kelantan.

The government had previously decided to carry on implementing the 5G network through the single wholesale network, by providing opportunities to telecommunication companies holding equity in DNB.

Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz said the cabinet agreed that the government, which holds 100% equity in DNB, would offer up to 70% equity to mobile network operators. – The Vibes, March 25, 2022
 

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