KUALA LUMPUR: Digi.Com Bhd's subsidiary, Digi Telecommunications Sdn Bhd, is subscribing 100,000 new shares in Digital Nasional Bhd (DNB) for RM100,000.
In a statement today, the company said Digi is also subscribing 178.47 million rights to the allotment of DNB shares for RM178.47 million.
"This agreement follows the government's decision in March 2022 to maintain a single wholesale network (SWN) model for the country's planned 5G network rollout via its wholly-owned company, DNB, and its subsequent offer of up to 70 per cent equity shareholding in DNB to the country's mobile network operators (MNOs)," it said.
This announcement confirms Digi's decision to accept the proposed equity offer in DNB.
Upon fulfilment of all conditions set out in the agreement, Digi expects to have a 12.5 per cent equity stake in DNB — out of the 65 per cent equity offered to all invited MNOs participating in the process, with the finance ministry retaining 35 per cent equity in DNB.
Digi's equity stake in DNB will increase to 17.5 per cent to be equal with the three other MNO investors if the proposed merger between Celcom Axiata Bhd and Digi is not completed by mid-2023, with the finance ministry's equity stake decreasing to 30 per cent.
Digi said that in addition to this equity transaction for a shareholding in DNB, discussions related to the access agreements and regulatory framework continue to make significant progress with DNB, the Malaysian Communications and Multimedia Commission (MCMC), other MNOs and relevant stakeholders.
"Digi continues to collaborate with all parties to align and finalise terms that would sustainably support the provision of affordable and reliable 5G services for Malaysian customers and enterprises.
"Digi will share more information on this upon the conclusion of the ongoing discussions," it said.
Digi remains fully committed to contributing towards a successful deployment of 5G for Malaysia and all Malaysians.
"The company strongly believes in the value creation of 5G and its potential benefits derived by businesses, customers, and the nation.
"The company looks forward to working with the Malaysian government, MCMC, and industry, lending its expertise in customer insights, supply chain, infrastructure, and experienced technical talents to support the successful rollout of 5G for Malaysia," it added.
In a separate statement, DNB said four MNOs – Celcom, Digi, YTL Communications Sdn Bhd (YES), and Telekom Malaysia Bhd (TM) – have today executed share subscription agreements (SSAs) to take up equity stakes in DNB.
The SSAs give effect to the MNOs' subscription of 65 per cent equity in DNB, with their respective stakes as follows - Celcom (12.5 per cent), Digi Telecommunications (12.5 per cent), YTL Communications (20 per cent), TM (20 per cent).
"The government will retain the other 35 per cent and hold a golden share.
"The golden share grants various rights and privileges and covers areas such as ownership, sale, or transfer of shares on the part of the government," DNB said.