Digi signs conditional share subscription agreement for 12.5 pct equity stake in DNB

KUALA LUMPUR, Oct 7 (Bernama) -- Digi.Com Bhd’s (Digi) unit Digi Telecommunications Sdn Bhd (DigiTel) has entered into a conditional share subscription agreement (SSA) with Digital Nasional Bhd (DNB) for the proposed subscription of 100,000 new ordinary shares in DNB for RM100,000 and 178.471 million rights to allotment of DNB shares by DigiTel for RM178.47 million.  

In a statement, the company said DigiTel is expected to have a 12.5 per cent equity stake in DNB – out of the 65 per cent equity offered to mobile network operators (MNOs), with the Ministry of Finance Inc (MoF) retaining 35 per cent equity in DNB.

Digi said this agreement follows the government’s decision in March 2022 to maintain a Single Wholesale Network model for the country’s planned 5G network rollout via DNB, and its subsequent offer of up to 70 per cent equity shareholding in DNB to the country’s MNOs.

"DigiTel’s equity stake in DNB will increase to 17.5 per cent to be equal with the three other MNO investors in the event the proposed merger between Celcom and Digi does not complete by mid-2023, with MoF’s equity stake decreasing to 30 per cent.

Meanwhile, Digi noted that discussions related to the access agreements and regulatory framework continued to make significant progress with DNB, the Malaysian Communications and Multimedia Commission (MCMC), other MNOs and relevant stakeholders.

"Digi continues to collaborate with all parties to align and finalise terms that would support the provision of affordable and reliable 5G services for Malaysian customers and enterprises in a sustainable manner. More information on this will be shared upon the conclusion of the ongoing discussions,” it added. 

-- BERNAMA