KUALA LUMPUR – New discussions will commence on fresh acquisitions of participating equity in Digital Nasional Bhd (DNB), Communications and Digital Minister Fahmi Fadzil said.
He said the recent announcement by Telekom Malaysia Bhd (TM) and CelcomDigi Bhd to terminate their share subscription agreements (SSA) with DNB was merely a formal exercise to end the old arrangement.
“Since we have established a task force on the 5G rollout this week, the new discussion about equity takeout will begin,” he told reporters at his ministry’s Hari Raya Aidilfitri open house in Angkasapuri last night.
CelcomDigi on May 3 in a filing to Bursa Malaysia said its subsidiaries – Celcom Mobile Sdn Bhd and Digi Telecommunications Sdn Bhd – were each pulling out their respective 12.5% stakes in DNB.
TM, meanwhile, filed its notice to Bursa on May 10 about withdrawing its 20% equity stake in DNB.
These withdrawals follow the government’s announcement that the national 5G rollout under a single wholesale network through DNB would transition to a dual wholesale network early next year, after DNB achieves 80% 5G coverage of populated areas.
“They (telcos) can start the discussion afresh, and the terms are different,” Fahmi said.
He added that the fresh talks are not a restructuring process.
“Right now, they are just restarting equity takeout in DNB,” Fahmi said.
The minister added that the equity withdrawals will not affect 5G implementation.
As of April 30, the implementation of the 5G network in the country had reached 61.7%.
“It is progressing, and we expect (it) to reach 80% by the end of the year.” – The Vibes, May 12, 2023
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