PETALING JAYA: CelcomDigi Bhd has terminated the respective agreements of its wholly-owned subsidiaries, Digi Telecommunications Sdn Bhd and Celcom Mobile Sdn Bhd, to subscribe for a 12.5% stake each in Digital Nasional Bhd (DNB).
In a statement issued today, the group indicated that it wanted “to play a more active and direct role” in the development of the nation’s 5G network.
“As per the government’s announcement, the earlier process to subscribe to equity in DNB through the respective share subscription agreements (SSAs) is rendered void,” said CelcomDigi.
The termination was announced in a Bursa Malaysia filing yesterday mere hours after communications and digital minister Fahmi Fadzil said the government would be allowing the establishment of a second 5G network.
The second network, which will only be established once DNB achieves 80% coverage of populated areas (CoPA), is meant to avoid a “single point of failure”.
CelcomDigi had reiterated that it welcomes the government’s decision to implement a dual network once 80% CoPA has been achieved by DNB.
In October last year, both its subsidiaries had agreed to collectively take up a 65% stake in DNB alongside YTL Communications Sdn Bhd, and Telekom Malaysia Bhd.
Under the SSAs, it was agreed that Celcom Axiata Bhd and Digi Telecommunications would each take up a 12.5% stake, while YTL Communications and Telekom Malaysia would each take up 20%.
Maxis Bhd and U Mobile Sdn Bhd chose to opt out of the exercise.
CelcomDigi Bhd is the merged entity of Celcom Axiata Bhd and DiGi.Com Bhd.
The group has yet to call for a shareholder meeting for the approval of equity participation in DNB, based on stock exchange filings.
“CelcomDigi welcomes the opportunity to play a more active and direct role in the country’s 5G implementation, leveraging on our experience and resources, existing widest 4G network, and supply chain and partner ecosystem to support the government’s 5G ambitions, as we bring the best 5G solutions and offerings to Malaysian consumers and businesses,” said the group.
CelcomDigi’s shares at the close of trade yesterday rose 0.91% or 4 sen to RM4.44, giving it a market capitalisation of RM52.09 billion.