Telekom Malaysia Exits Share-Subscription Agreement With Digital Nasional

By Ying Xian Wong

Telekom Malaysia has terminated its share-subscription agreement with Digital Nasional, joining fellow telco CelcomDigi in ending its participation with the state-owned entity as Malaysia moves to change its 5G network system.

The telco made the announcement Wednesday evening in a bourse filing, saying that the "longstop date to fulfil all conditions precedent under the share subscription agreement has lapsed."

CelcomDigi cited the same reason when it announced its exit from the share-subscription agreement earlier this month.

The move comes a week after Malaysia's communications minister, Fahmi Fadzil, announced a policy change that will allow a second 5G network to be formed in the country. Under the current wholesale network model, Digital Nasional is the sole 5G services provider. The change will be effective once Digital Nasional's 5G network coverage reaches 80% of populated areas by end of this year.

Before the changes, the country's four major mobile network operators had a 65% equity in the Digital Nasional, and the government had the other 35% plus a "golden share" that gave it various rights and privileges.

Write to Ying Xian Wong at yingxian.wong@wsj.com

(END) Dow Jones Newswires

May 10, 2023 22:16 ET (02:16 GMT)

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