KUALA LUMPUR: Digital Nasional Bhd (DNB) says the share subscription agreement (SSA) with Telekom Malaysia Bhd (TM) has been terminated today.
This follows the expiration of the conditions precedent longstop date for TM with respect to the SSA on Aug 21.
TM had on Dec 1 last year signed the SSA with the Minister of Finance (Incorporated) (MoF Inc) to buy a stake in the later.
DNB said the longstop date for TM was previously extended from June 21 this year to Aug 21 to enable TM to seek its shareholders' approval, which was one of the conditions precedent in the TM SSA.
TM was, however, unable to fulfil the said condition precedent by Aug 21 and had requested for a further extension of the longstop date to Dec 31 2024.
"DNB has deliberated on the request but was unable to extend the deadline further. In light of the expiry of the longstop date, DNB has terminated the TM SSA by way of issuance of the requisite notices of termination to TM and MoF Inc. on Aug 23 2024."
On June 28 this year, DNB completed the SSAs with four mobile network operators (MNOs) in Malaysia.
They were CelcomDigi Bhd through Infranation Sdn Bhd, Maxis Broadband Sdn Bhd, U Mobile Sdn Bhd and YTL Communications Sdn Bhd through YTL Power International Bhd.
DNB said the termination of the TM SSA does not impact the validity of the completed SSAs with the four MNOs.
Under the terms of the SSAs, the four MNOs collectively acquired 65.1 per cent stake in DNB, with each MNO holding 16.3 per cent.
The government, represented by MoF Inc, retains a 34.9 per cent stake and a special share in DNB for a designated period.