KUALA LUMPUR: Digital Nasional Berhad (DNB) has announced that the Share Subscription Agreement (SSA) between it and Telekom Malaysia Berhad (TM) has been terminated.
This decision follows the expiry of the agreement's conditions precedent longstop date, on Dec 1, 2023. An extension was given from June 21 until Aug 21 of this year.
In June, Communications Minister Fahmi Fadzil stated that telcos were ready to sign an agreement to take up equity in DNB and be involved in the implementation of the dual network 5G model.
The longstop date of the SSA was given to enable TM to seek shareholders' approval, which was one of the conditions of the agreement. However, TM failed to obtain this approval and requested a further extension until Dec 31.
After deliberation, DNB decided not to grant the additional extension and terminated the SSA.
DNB clarified that this termination does not affect its SSAs with four mobile network operators – CelcomDigi Berhad through Infranation Sdn Bhd, Maxis Broadband Sdn Bhd, U Mobile Sdn Bhd, and YTL Communications Sdn Bhd through YTL Power International Sdn Bhd.
Through the SSAs, these four operators collectively hold a 65.1 per cent equity stake in DNB.