- TM requested more improvement, DNB turned this down without offering , cause
- Cancellation has no effect on the accuracy of completed SSAs with the four MNOs.
Digital Nasional Bhd ( DNB) announced, in a statement late Friday evening, that the conditions precedent longstop date for Telekom Malaysia Bhd ( TM) with respect to the Share Subscription Agreement entered between DNB, Minister of Finance ( Incorporated ) ( MoF Inc ) and TM dated 1 Dec 2023 ( TM SSA ) expired on 21 Aug, and consequently the TM SSA has been terminated on 23 Aug.
The TM longstop meeting was recently changed from 21 June to 21 Aug in order for TM to obtain its shareholders ‘ consent, which was one of the TM SSA’s precedent conditions. TM requested a further expansion of the longstop meeting to 31 Dec 2024 because it was unable to fulfill the condition precedent by the 21 Aug deadline. Coc stated it was unable to extend the deadline any further while it deliberated on the demand. It did not give a reason for its selection.
DNB canceled the TM SSA on August 23rd, 2015 by issuing the necessary cancellation notices to TM and MoF Inc.
The Share Subscription Agreements ( Saas ) were signed by DNB’s four mobile network operators ( MNOs ) in Malaysia on June 28, 2024, including YTL Communications Sdn Bhd through YTL Power International Bhd. The authenticity of the completed SSAs with the four MNOs is not affected by the termination of the TM SSA, according to DNB.
The four MNOs collectively acquired an estimated 65.1 % equity stake in DNB under the terms of the SSAs, with each MNO holding an estimated 16.3 % stake. The Malaysian Government, represented by MoF Inc., retains an approximately 34.9 % interest and a Special Promote in DNB for a designated time.