SSA conditions met, telcos to take up equity stake, says DNB

SSA conditions met, telcos to take up equity stake, says DNB

Digital Nasional Bhd says the share subscription agreements are poised for completion by the end of June.

Digital Nasional Bhd said the conditions precedent under the share subscription agreements were successfully met on June 20. (DNB pic)
KUALA LUMPUR:
Digital Nasional Bhd (DNB) has confirmed that all conditions precedent under the share subscription agreements (SSAs) were successfully met on June 20, 2024.

In a statement, it said this was an important milestone with respect to the SSAs with four mobile network operators (MNOs) in Malaysia, namely CelcomDigi Bhd through Infranation Sdn Bhd, Maxis Broadband Sdn Bhd, U Mobile Sdn Bhd, and YTL Communications Sdn Bhd through YTL Power International Bhd.

“With this crucial step completed, the SSAs are poised for completion by the end of June 2024 for all the MNOs, apart from Telekom Malaysia Bhd (TM), to increase their equity stake in DNB,” it said.

On Dec 1, 2023, DNB and the Minister of Finance (Incorporated) (MoF Inc) entered into SSAs with five MNOs, thereby enabling the MNOs’ participation in DNB through equity ownership.

The long stop date for TM is Aug 21, 2024 for it to seek its shareholders’ approval, in accordance with its governance requirements, it said.

Under the terms of the SSAs, it is envisaged that the MNOs will collectively acquire a 70% equity stake in DNB, with each MNO holding a 14% stake.

The government, represented by MoF Inc, will retain a 30% stake and a special share in DNB for a designated period.

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