DNB cancels share sale deal with Telekom Malaysia

Telekom Malaysia has announced that its agreement to buy a stake in state-owned Digital Nasional Berhad (DNB) was terminated, after its request for additional time to secure shareholders’ approval was declined. Telekom Malaysia (TM) has received the deal termination notice from DNB on 23 August. The share subscription agreement was signed on 01 December 2023. 

Back in June this year, CelcomDigi, Maxis, U Mobile and Telekom Malaysia completed their share subscription agreements and acquired a 16.3 percent stake each in DNB. The individual stake is higher than the 14 percent they were initially expected to take up, as TM had yet to complete its part of the deal. TM had to seek shareholders’ approval in an extraordinary general meeting (EGM), as the share subscription agreement would be a related party transaction. The deadline given by DNB to TM was 21 August, but TM requested more time beyond the date to address matters related to the EGM to be held. This extension request was not approved by DNB, and the state-owned operator terminated the deal. 

TM also reports that the tenure of its nominee director on the DNB board has also ceased. This deal termination does not affect TM’s current 5G offerings to the customers as its 5G wholesale service subscription from DNB remains in place, the Malaysian operator added.