KUALA LUMPUR – The decision by Digital Nasional Bhd (DNB) to terminate its share subscription agreement (SSA) with Telekom Malaysia Bhd (TM) remains in effect, though TM retains the right to appeal, according to Digital Minister Gobind Singh Deo.
The minister’s remarks follow the termination of TM’s SSA, which was initially signed on December 1, 2023, to acquire a stake in DNB.
The termination occurred after TM requested additional time to secure shareholder approval – a request that DNB ultimately denied, leading to the rejection of a subsequent appeal by TM.
The Finance-ministry-owned DNB is the special-purpose vehicle tasked with rolling out Malaysia’s 5G network infrastructure.
Gobind noted that while TM had been granted previous extensions by DNB, the company failed to meet the conditions within the extended timeframe, resulting in the SSA’s termination.
“While we cannot stop TM from appealing, the decision made by DNB to terminate the SSA stands.
“They had requested an extension of time, which was granted – but they were unable to comply within the extended period, leading to the termination of the SSA between them and DNB.
“This is a matter between TM and DNB, not the Digital Ministry.
“Once again, if TM wishes to appeal, it’s up to them to raise their concerns with DNB and the board,” Gobind said during a press conference following the “Connected Seaports Forum-Advanced Technological Use Cases Powered by 5G” at Perdana KLCC today.
During his keynote speech, Gobind encouraged Malaysian seaport operators to invest in digital and 5G technologies to stay competitive in the industry.
He also revealed that discussions are ongoing to identify the appropriate tender for establishing the second 5G network infrastructure operator.
Including TM, four mobile network operators have submitted proposals for the second network model, which are CelcomDigi, Maxis, and U Mobile.
“We are currently going through the tendering process for the second network. What happens later is something that will be discussed subsequently,” Gobind added.
In June, four mobile network operators – CelcomDigi Bhd, Maxis Bhd’s Maxis Broadband Sdn Bhd, the unlisted U Mobile Sdn Bhd, and YTL Power International Bhd – finalised their share subscription agreements, each acquiring a 16.3% stake in DNB. – August 27, 2024