(Bloomberg) — Malaysia’s sole 5G network owner Digital National said it has called off a proposed 233 million ringgit ($53.3 million) stake sale to Telekom Malaysia after the company failed to meet necessary conditions for the deal to close.
DNB said in a statement late on Friday that Telekom Malaysia had failed to get shareholder approval by the Aug. 21 deadline and had sought an extension to Dec. 31. DNB said it decided not to extend the deadline and closed trading on Aug. 23.
Telekom Malaysia said in a separate filing that it needed more time to hold an EGM as the share sale was a related-party transaction. The company said its wholesale services agreement with DNB remained in force.
DNB’s largest shareholder is the government-owned Ministry of Finance, which is indirectly also Telekom Malaysia’s largest shareholder.
DNB said after the cancellations, the four mobile carriers collectively hold a 65.1% stake in the 5G network: YTL Power International Bhd., U Mobile Sdn., Maxis Bhd. and CelcomDigi Bhd. Each holds about 16.3% stake, with the rest owned by the Ministry of Finance Inc.
Malaysia had previously announced it would launch a bidding process for its second 5G network as DNB’s 5G coverage has reached 80% of all populated areas.
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