KUALA LUMPUR: The appointment of Digital Nasional Bhd’s (DNB) new board members marks a significant milestone as envisaged in the share subscription agreements (SSAs) signed on 5G network restructuring, said Digital Minister Gobind Singh Deo.
The SSAs were signed between DNB, the Minister of Finance, Incorporated (MoF Inc) and the five mobile network operators (MNOs), namely Maxis Bhd, CelcomDigi Bhd, Telekom Malaysia Bhd, U Mobile Sdn Bhd and YTL Communications Sdn Bhd, on Dec 1, 2023.
The minister said the SSAs were entered into by the parties to put into effect the government’s policy as announced on May 2, 2023, on the transition from a single wholesale network (SWN) 5G model to a dual network (DN) 5G model.
“There are two main phases to the transition. First, the DNB 5G network reaches 80 per cent coverage of populated areas (CoPA) and the participation of the MNOs in DNB.
“Second, the shift to DN and the divestment of the government’s (through MoF Inc) equity in DNB where some of the MNOs will remain with DNB while the remaining MNOs will move to the second 5G network and divest their equity in DNB,” Gobind said in a statement today.
The minister highlighted the government’s aspiration as per the policy announcement that the SSAs, which are an integral process of the first phase, will enable the participation of all the MNOs in DNB as shareholders before the eventual shift to the Dual 5G Network.
“I was given to understand that following the appointments of DNB’s new board members, the newly reconstituted board of DNB will convene a meeting soon to, among others, review the due diligence findings and work towards the fulfilment of the remaining conditions precedent and the completion of the SSAs.
“Upon the completion of the SSAs, it is envisaged that the MNOs will collectively subscribe 70 per cent equity in DNB (at 14 per cent per MNO), leaving MoF Inc with 30 per cent equity and a special share which will accord MoF Inc certain special rights for a stipulated period.
“The rights and obligations of the parties will be set out in the shareholders’ agreement that will be executed by the parties,” he added.
Gobind noted that the latest development is an important step towards fulfilling the government’s commitment to the implementation of the dual 5G network policy.
“The parties will continue the due process to complete the SSAs, and thereon to enhance Malaysia’s 5G network deployment,” he said.
