TM becomes latest to terminate deal to acquire DNB stake

Telekom Malaysia has become the latest company to withdraw from a deal to acquire a stake in Digital Nasional Berhad (DNB), following the announcement last week that the Malaysian government is to permit the rollout of a second 5G network in the country from next year. Confirming the development in a press release, TM noted it had filed an announcement with the local stock exchange, Bursa Malaysia, to notify that the longstop date to fulfil all conditions precedent in the share subscription agreement (SSA) for the subscription of a 20% equity stake in DNB had lapsed. Consequently, TM said it had issued a termination notice to DNB, effective immediately.

Despite the decision not to take a stake in the wholesale 5G operator, TM said it ‘is committed to continue playing an active role in the 5G implementation, leveraging its nationwide fibre infrastructure, extensive digital platforms (data centre, edge nodes) and rollout experience’.

As previously reported by TeleGeography’s CommsUpdate, in the wake of the government revealing it would allow a second 5G network deployment, Celcom and Digi Telecommunications terminated their respective SSAs with DNB, effective 3 May 2023. In a press statement at the time, the cellcos’ parent company CelcomDigi noted: ‘As per the government’s announcement, the earlier process to subscribe to equity in DNB through the respective SSA is rendered void. The termination of the respective SSA will clear the path for CelcomDigi to participate in any new process, including equity participation, together with the industry.’