CelcomDigi, Maxis, and YTL Communications have each injected an additional RM202 million into Digital Nasional Berhad (DNB), as part of ongoing efforts to support the company’s operations and spectrum-related commitments. The latest funding round was made at the request of the state-owned 5G wholesale network provider, according to Bursa Malaysia filings by CelcomDigi and Maxis.
With this injection, each of the three telcos’ total shareholder advances now stands at RM551.9 million. This translates to an effective 22.94% stake each in DNB, based on a combination of issued share capital and shareholder advances. Meanwhile, Ministry of Finance Incorporated (MoF Inc) remains the single largest stakeholder with a 31.18% interest, backed by RM500.1 million in share capital and RM250.2 million in advances.
However, MoF Inc did not participate in this latest funding round, having exercised its put option on 1 December 2025. The option was subsequently fulfilled by CelcomDigi, Maxis, and YTL, effectively increasing their financial commitments to DNB.
According to CelcomDigi, the additional funds will be used to pay upfront spectrum fees tied to spectrum acceptance, while also covering working capital requirements. “The additional shareholder advance will be utilised by DNB to pay upfront spectrum fees as part of the spectrum acceptance and to meet its working capital requirements,” the company said in its filing.
The advances are structured as interest-free and are not repayable on demand. Instead, repayment will only occur upon mutual agreement and subject to compliance with relevant covenants. The funding may also be treated as prepayments under existing access agreements, depending on the terms outlined in the shareholders’ agreement.
Notably, each Ringgit advanced carries voting rights equivalent to ordinary shares, reinforcing the telcos’ influence within DNB. Both CelcomDigi and Maxis noted that the additional advances are not expected to materially impact their earnings, net assets, or gearing for the financial year ending 2026.
This latest injection follows an earlier round of funding last month, where CelcomDigi and Maxis increased their stakes in DNB after MoF Inc began stepping back from direct participation. The ongoing financial support reflects the telcos’ continued role in sustaining DNB’s operations.
To refresh, DNB was originally established as a special-purpose vehicle under MoF Inc to roll out the country’s 5G infrastructure and operate as the sole wholesale provider. However, the government later shifted to a dual wholesale network model, appointing U Mobile in November 2024 to develop a second 5G network.
As part of this transition, the government has indicated that DNB’s remaining liabilities will ultimately be borne by its shareholders once it fully exits the company. The shareholder structure has already shifted in recent years, with Telekom Malaysia (TM) exiting its equity participation in 2023, followed by U Mobile divesting its stake in 2025 to focus on building the second network.
(Source: The Edge Malaysia)
