Telekom Malaysia (TM) has confirmed that it received a termination notice from Digital Nasional Berhad (DNB) regarding their Share Subscription Agreement (SSA). The agreement, signed on 1 December 2023, was dependent on the company obtaining shareholder approval through an Extraordinary General Meeting (EGM), as the SSA is considered a related party transaction. However, TM was unable to secure this approval by the original deadline of 21 August 2024, prompting the termination.
Despite the termination of the SSA, the telco is assuring customers that this development will not impact its current 5G services. TM continues to subscribe to DNB’s 5G wholesale service and remains committed to delivering high-quality converged digital solutions to its customer base across multiple sectors.
Following this development, only four telecom operators, CelcomDigi, Maxis, YTL and U Mobile, now hold stakes in DNB, each with a 16.3% share. TM’s withdrawal leaves these companies as the key equity holders in DNB, which oversees the development of Malaysia’s 5G infrastructure.
The company has yet to clarify on whether this will impact its participation in the bidding process for the country’s second 5G network. Previously, communications minister Fahmi Fadzil indicated that the tender process would include telecommunications companies that had completed the share purchase agreements for DNB equity ownership.
(Source: TM [press release])
