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DNB cancels share subscription agreement with TM

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The 5G wholesale network service says the telecoms company had requested a four-month extension to complete their share subscription agreement.

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DNB said it could not wait any longer for TM to meet the conditions precedent in their share subscription agreement. (DNB pic)

PETALING JAYA:
Digital Nasional Bhd (DNB) has terminated its share subscription agreement (SSA) with Telekom Malaysia, the company said in a statement this evening.

DNB said it had entered into the agreement with TM and four other mobile network operators (MNOs) on Dec 1, 2023, and they had been given until June 21, 2024, to meet the conditions precedent to complete the SSA.

“The longstop date for TM was previously extended from June 21 to Aug 21 to enable TM to seek its shareholders’ approval, one of the conditions precedent in the TM SSA.

“TM was however unable to fulfil the conditions by the new deadline, requesting a further extension until Dec 31.

“DNB has deliberated on the request but was unable to extend the deadline further,” DNB said in a statement, adding that it had terminated the SSA by way of issuance of the requisite notices to TM and the Ministry of Finance Inc on Aug 23.

DNB completed the SSA with the remaining four MNOs – CelcomDigi Bhd, Maxis Broadband Sdn Bhd, U Mobile Sdn Bhd and YTL Communications Sdn Bhd – on June 28 this year.

“Under the terms of the SSAs, the four MNOs collectively acquired approximately 65.1% equity stake in DNB, with each MNO holding an approximately 16.3% stake.

“The government, represented by MoF Inc, retains an approximately 34.9% stake and a special share in DNB for a designated period,” the company said.

TM also released a statement this evening, in which it confirmed that it had requested another deadline extension because it required more time to obtain shareholders’ approval at an extraordinary general meeting to discuss the SSA.

“This turn of events does not affect TM’s current 5G offerings to the customers because its 5G wholesale service subscription from DNB remains in place.

“TM will continue to play a key role in supporting the nation’s 5G ecosystem and transition to the 5G Dual Network, ensuring that the nation benefits from the latest advancements in connectivity and digital services,” TM said in the statement.

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