The Ministry of Finance Inc’s (MOF Inc) move to exit Digital Nasional Berhad (DNB) is expected to create short-term financial and earnings pressures for the country’s major mobile operators, according to Maybank Investment Bank Research. The research house maintained a NEUTRAL call on the telecommunications sector.
Put Option Triggered
MOF Inc exercised its put option on 1 December 2025, compelling the remaining DNB shareholders—CelcomDigi, Maxis, and YTL Power—to buy over its entire stake and shareholder advances.
Each company must now pay RM327.9 million, bringing MOF Inc’s total proceeds to RM983.6 million. Under the put option terms, the telcos have two months from the notice date to complete the transaction.
The put option window opened following the first anniversary of the Share Subscription Agreement (SSA) on 12 November 2025.
Financial Impact: Cash Outflow & Loss Consolidation Risks
Maybank IB highlighted two immediate implications for the telco operators: a significant upfront payment, where each shareholder must fund the RM327.9 million acquisition of MOF Inc’s stake.
Equity accounting of DNB’s losses. When MOF Inc exits, DNB becomes an associate of the remaining shareholders. This means operators will have to recognise their share of DNB’s losses—
DNB recorded a net loss of RM1.2 billion in FY2024, raising concerns about future earnings drag.
The research house said it is maintaining earnings forecasts for telcos until DNB’s new ownership structure and operational guidance become clearer.
Cost-Efficiency Measures Expected to Intensify
To manage the cash outflow and mitigate earnings impact, Maybank IB expects telcos to accelerate capex and opex optimisation by shifting more traffic to DNB’s 5G network to reduce spending on their own infrastructure. Increasing utilisation of DNB’s network, potentially improving DNB’s revenue trajectory and reducing losses and reducing duplication across 4G/5G systems as consolidation progresses
Fixed-Line Players Unaffected
The investment bank noted that Telekom Malaysia (TM) and TIME dotCom are not shareholders of DNB or the second 5G network entity and therefore “remain largely insulated” from DNB-related earnings risks.
Maybank IB said that while telcos still have the capacity to absorb the financial impact, MOF Inc’s withdrawal introduces new uncertainties around the future DNB cashflows, long-term 5G funding requirement, and loss-sharing arrangements across shareholders
The research house expects clarity to emerge once the operators issue detailed guidance on DNB’s earnings outlook and integration roadmap.
Despite the near-term headwinds, Maybank IB maintains a NEUTRAL sector stance pending structural clarity and visibility on the revised 5G rollout framework.
