Photo by Low Yen Yeing/The Edge

KUALA LUMPUR (May 13): As U Mobile Sdn Bhd has been appointed to roll out the second 5G network in the country, its stake in Digital Nasional Bhd (DNB) will be taken over by CelcomDigi Bhd (KL:CDB), Maxis Bhd (KL:MAXIS), YTL Power International Bhd (KL:YTLPOWR) and the Minister of Finance Inc (MOF Inc).

According to filings by CelcomDigi and Maxis with Bursa Malaysia, U Mobile agreed to sell its entire 100,000 shares in the 5G network wholesaler for RM100,000.

CelcomDigi, Maxis and YTL Power will each acquire 33,333 shares, while the MOF Inc will take one share. The aggregate sum is RM100,000 based on the acquisition price of RM1 per share.

DNB’s revised shareholding structure will see MOF Inc’s stake increasing to 41.67% from 34.88% previously, after Telekom Malaysia Bhd’s (KL:TM) plan to buy a stake in DNB was terminated.

Meanwhile, CelcomDigi, Maxis and YTL Power will each hold 19.44% in DNB compared to 16.28% previously.

In a letter dated May 13, MOF Inc, CelcomDigi, Maxis and YTL Power agreed to vary certain terms of the shareholders agreement signed on June 28, 2024. The variation agreement is expected to be completed on May 30, 2025.

Under the revised terms, U Mobile will no longer be entitled to exercise its put or call options.

DNB, a special-purpose vehicle under MOF, was initially established to deploy 5G infrastructure and serve as the sole provider of wholesale 5G services to telcos.

In November last year, U Mobile was appointed by the government to deploy the second 5G network, following the government’s decision to adopt a dual 5G network model to encourage competition.

Last month, U Mobile appointed Huawei Technologies Co Ltd and ZTE Corp as its technology partners to deploy Malaysia’s next-generation 5G network under the dual network model.

Launched in 2007, U Mobile has increased its subscriber base from less than 50,000 to more than four million in less than five years. By end-2023, it had more than nine million subscribers.

According to the latest CTOS data, U Mobile’s largest shareholder is Singapore-based Straits Mobile Investment Pte Ltd with 1.025 billion shares, or a 48.25% stake. The second-largest shareholder is the King, Sultan Ibrahim Sultan Iskandar, with a 22.31% stake.

U Mobile chairman Tan Sri Vincent Tan holds a cumulative 13.66% of U Mobile through his companies Singer (Malaysia) Sdn Bhd (6.09%), U Telemedia Sdn Bhd (5.59%) and Berjaya Infrastructure Sdn Bhd (1.98%).

Shares in CelcomDigi settled one sen or 0.26% higher at RM3.90, bringing the group a market capitalisation of RM45.75 billion.

Maxis closed up one sen or 0.26% at RM3.79 for a market capitalisation of RM29.69 billion. YTL Power ended the Tuesday session at RM3.68, having gained nine sen or 2.51%, with a market capitalisation of RM30.46 billion.