KUALA LUMPUR, May 4 — CelcomDigi Berhad today announced it will participate in any new processes after the government rolled out a dual wholesale 5G network.
In a statement to Bursa Malaysia yesterday, the telecommunications giant said its subsidiaries Digi Telecommunications Sdn Bhd (Digitel) and Celcom Mobile Sdn Bhd (Celcom Mobile) have terminated the Share Subscription Agreements (SSA) signed with Digital Nasional Berhad (DNB) in November last year.
“The termination of the respective SSA will clear the path for CelcomDigi to participate in any new process, including equity participation, together with the industry,” the statement read.
CelcomDigi said the termination of the SSA was due to the lapse of the long stop date to fulfil all conditions precedent to the agreement.
The SSA involved the proposed subscription of 100,000 new ordinary shares in DNB and up to 291.57 million rights to allocation of DNB shares.
CelcomDigi said it does not expect the SSA termination to have any significant effect on its earnings and net assets for this financial year ending on December 31.
Yesterday, Communications and Digital Minister Fahmi Fadzil announced that Malaysia will continue the rollout of 5G with DNB until 80 per cent of population coverage has been reached, after which it will transition to a dual wholesale network model.
He said that the transition to the migration of the dual network system is expected to begin early next year.
He expressed confidence in the 80 per cent target being met by the end of this year as the rollout is currently at an estimated 57.8 per cent with a remainder of roughly 2,000 sites to go.
