Business

Share subscription agreements between mobile network operators, DNB to be concluded soon

Last-minute change by two MNOs delays execution of SSAs slightly

Updated 4 years ago · Published on 31 Aug 2022 8:36PM

Share subscription agreements between mobile network operators, DNB to be concluded soon
Digital Nasional Bhd will exclusively own, build, and manage the 5G network, and provide wholesale 5G services to licensed service providers, as well as infrastructure and technology services to support and enable businesses and government capabilities. – The Vibes file pic, August 31, 2022

KUALA LUMPUR – The execution of share subscription agreements (SSAs) between mobile network operators (MNOs) and Digital Nasional Bhd (DNB) will be concluded soon.

Although the SSAs were finalised and ready to be executed by six MNOs yesterday, there was a last-minute change in the decision by two MNOs, despite their confirmations of participation earlier. 

According to a statement by DNB today, one had decided not to proceed, while the other had not responded. 

“Accordingly, revisions to the transaction documents (SSAs and shareholder agreements) need to be made to allow for the equity subscription by four MNOs (instead of six), which consequently require further internal approvals from the four MNOs,” said the statement.  

“The four MNOs remain interested, and it is envisaged that the equity participation process will progress to completion with the MNOs concerned.” 

It added that the discussions on the 5G access agreements are progressing with all six MNOs and under a separate and independent track. 

“DNB is committed to ensure that the 5G network and infrastructure will continue to be deployed on an accelerated basis,” said the statement.

At present, 5G coverage has reached approximately 30% of populated areas and is on track to achieve the target of 80% coverage of populated areas by 2024, it added.

DNB is a Minister of Finance Inc. company, mandated to deploy Malaysia’s 5G network and infrastructure on an accelerated schedule.

DNB will exclusively own, build, and manage the 5G network, and provide wholesale 5G services to licensed service providers, as well as infrastructure and technology services to support and enable businesses and government capabilities. 

It is licensed as a telecommunications operator by the Malaysian Communications and Multimedia Commission. – The Vibes, August 31, 2022

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