DNB gives telcos 20 days to finalise stakes

24 May 2024

DNB has reportedly given the five telcos taking stakes in the company 20 days to finalise the process as the government looks to get on with launching a second 5G operator and encourage private 5G adoption.

DNB held its first board meeting on Monday with new board members representing Telekom Malaysia, Maxis, U Mobile, YTL and CelcomDigi’s Infranation. All five signed share subscription agreements (SSAs) in December 2023 to collectively take a 70% stake in DNB, with each taking a 14% stake, while the Minister of Finance (MOF) will hold the remaining 30% as well as a special share.

However, the SSAs have not yet been finalised because the telcos have not yet agreed on the ‘condition precedents’ that have to be settled before the SSAs can take effect.

The DNB board has given the telcos 20 days to sort everything out and will not be allowed to make bids for the government’s planned second 5G network until the SSAs are completed. The Malaysian Communications and Multimedia Commission (MCMC) will announce a tender process soon to kick off the bidding process for the second 5G network.