Four Mobile Network Operators Celcom Axiata Bhd, Digi Telecommunications Sdn Bhd, YTL Communications Sdn Bhd and Telekom Malaysia Bhd – have executed share subscription agreements taking share equity in DNB.
In a press statement, DNB confirmed the SSAs will give effect to the MNOs’ subscription of 65% equity with their respective stakes as follows: Celcom Axiata (12.5%), Digi Telecommunications (12.5%), YTL Communications (20%), TM (20%). The Government will retain the other 35% and hold a Golden Share. It said the Golden Share grants various rights and privileges and covers areas such as ownership, sale, or transfer of shares on the part of the Government.
The 12.5% shareholding each for Celcom Axiata and Digi Telecommunications is in recognition of their imminent merger. Under the terms of the SSA and the agreed governance structure between the parties, no single MNO can hold more than a 20% shareholding in DNB, and in the event of a merger between the MNOs, the merged entity cannot hold more than a 25% shareholding in DNB.
“I expect that all parties will make every effort to deliver 5G availability to all their Malaysian and global ‘roaming’ customers. The MNOs, in particular, have a crucial role to play in ensuring the accelerated adoption of 5G among end users” said DNB Chairman, Yang Berbahagia Datuk Seri Asri Hamidon.
DNB says 5G coverage has achieved 33% of populated areas as against a target of approximately 40% by end-2022. The testing and integration of 5G sites by the MNOs have progressed and they are ready to provide 5G services to end-users located in areas where 5G infrastructure is currently available.
Currently, there are 12 device brands now offering more than 100 5G-compatible models for use in Malaysia.
