BUSINESS

KEY SSA MILESTONE ACHIEVED, TELCOS TO TAKE UP EQUITY STAKE - DNB

21/06/2024 12:17 AM

KUALA LUMPUR, June 20 (Bernama) — Digital Nasional Bhd (DNB) has confirmed that all the conditions precedent under the Share Subscription Agreements (SSA) have been successfully met on June 20, 2024.

In a statement, it said this is an important milestone with respect to the SSA with four mobile network operators (MNO) in Malaysia, namely CelcomDigi Bhd through Infranation Sdn Bhd, Maxis Broadband Sdn Bhd, U Mobile Sdn Bhd, and YTL Communications Sdn Bhd through YTL Power International Bhd.

”With this crucial step completed, the SSAs are poised for completion by the end of June 2024 for all the MNOs, apart from Telekom Malaysia Bhd (TM), to increase their equity stake in DNB.”

On Dec 1, 2023, DNB and the Minister of Finance (Incorporated) (MoF Inc) entered into SSAs with five MNOs, thereby enabling the MNOs’ participation in DNB through equity ownership.

The long stop date for TM is August 21, 2024, for it to seek its shareholders’ approval, in accordance with its governance requirements, it said.

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.

As the parties move towards the completion of the SSAs, DNB remains committed to driving technological innovation and expanding digital services across the country, fostering a more connected and digitally empowered Malaysia.

-- BERNAMA


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