KKD confirms details of stakes being taken in DNB by local operators as SSAs are signed

Malaysia’s Ministry of Communications and Digital (known locally as Kementerian Komunikasi Dan Digital, or KKD) has finally confirmed details regarding the stakes that are to be taken in 5G wholesale operator Digital Nasional Berhad (DNB) by local operators. Details of the stake acquisitions alongside confirmation that all five domestic mobile operators – CelcomDigi, Maxis, Telekom Malaysia, U Mobile and YTL Communications – had, after a number of delays, put pen to paper on their respective share subscription agreements (SSAs).

According to local news agency Bernama, collectively the five cellcos will take a 70% stake in DNB, each holding 14% of the wholesale operator, with the other 30%, including a golden share, remaining in state hands. With each operator set to reportedly pay around MYR233 million (USD50 million) for their stake, subject to due diligence being completed, the cash inflow will be used by DNB to meet its funding requirements. Meanwhile, the KKD has said it now expects the SSAs to be completed ‘between February and April 2024.

Of note, an FAQ sheet regarding the matter released by the KKD noted that it may exit DNB as a shareholder upon the wholesale operator achieving its current coverage target of 80% of populated areas. According to the most recent data, DNB’s 5G network has to date been expanded to cover around 73% of the population.