Industry sources told Straits Times that a non-binding term sheet had been agreed upon by six telcos ahead of a June 30 deadline and a shareholders agreement for a stake in DNB is set to be inked in early July.

“We are just doing due diligence, which should be completed within a fortnight,” a source said on condition of anonymity due to non-disclosure agreements signed when negotiations began earlier this month.

This comes after Kuala Lumpur played hardball with the “Big Four” mobile network operators (MNO) who were dragging their feet and insisting on favourable terms, with a view at maintaining control of an industry crucial to the national economy in the post- pandemic recovery, the report said.

Finance Minister Tengku Zafrul Aziz had told The Straits Times in an exclusive interview on June 16 that an extension to “early July, but no later than that” was possible, if required to tie up loose ends.

Celcom, DiGi, Maxis and U Mobile, collectively known as CDMU, have close to 90% of the market share, according to the report. They had insisted on holding a controlling 51% stake in DNB, as well as extending the deadline beyond this month.

The negotiations have been closely watched as they could have a huge impact on the future of mobile connectivity in the country, with communications and multimedia minister Annuar Musa threatening to open the door to other players if existing telcos – some of which complained of unfair terms – did not sign up to what will be Malaysia’s only 5G wholesale provider.