KUALA LUMPUR: Five Mobile Network Operators (MNOs) including CelcomDigi Bhd (CDB) and Maxis Bhd today entered into conditional share subscription agreements (SSAs) with Digital Nasional Bhd (DNB) and Minister of Finance, Incorporated (MoF Inc) to subscribe for equity stakes in DNB.

The SSAs give effect to the MNOs' collective subscription, subject to satisfactory due diligence, of 70 per cent equity or 14 per cent each in DNB with the government, through the MoF Inc, retaining the remaining 30 per cent and holding a Special Share.

The signing of the SSAs will see each MNO injecting approximately RM233 million, which will be utilised to meet DNB's funding requirements.

Meanwhile, in a filing with Bursa Malaysia, CDB said it has through its wholly owned Infranation Sdn Bhd subscribed for 100,000 DNB shares at an issue price of RM1.00 for each DNB share, or at the aggregate price of RM100,000.

"The proposed transaction represents a solid commitment from CDB along with the other telcos to support the government's 5G ambition for DNB to achieve its 80 per cent coverage in populated areas (CoPA) target, as well as to be eligible to participate in the nation's 5G Dual Network (DN) transition.

"CDB believes that the 5G DN model will benefit the nation's digital agenda, leveraging the existing network and infrastructure resources from industry players to enable seamless 4G to 5G connectivity as well as mitigation against the risk of single point failure," it said.

Meanwhile, Maxis Bhd said in a Bursa Malaysia filing that it is also subscribing for 100,000 DNB shares at an issue price of RM1.00 for each DNB share, or at the aggregate price of RM100,000.

"The entry into the proposed investment is the first step of the transition to a dual 5G network model, which Maxis Group is committed to play an active role in.

"This is in line with the government's announcement on May 3, 2023 to first focus on achieving 80 per cent 5G coverage of populated areas (CoPA) by the end of 2023 under DNB, followed by the transition to a dual 5G network model," it said.

DNB is wholly owned by MoF Inc with an issued share capital of RM500 million comprising of 500 million ordinary shares.

DNB has achieved 73 per cent CoPA in Malaysia as at Oct 31, 2023 and is targeting to reach its 80 per cent CoPA target by the end of 2023.

At the close of trading on Bursa Malaysia, CelcomDigi decreased 10 sen to RM4.24 with 34.51 million shares traded while Maxis added six sen to RM3.96 with 994,500 shares changing hands.

-- BERNAMA