KUALA LUMPUR (May 14): U Mobile Sdn Bhd has confirmed the divestment of its stake in Digital Nasional Bhd (DNB) to the remaining shareholders of the wholesale 5G network operator for RM100,000, as the company gears up for the rollout of the nation's second 5G network.

U Mobile also assured its customers that their 5G experience would not be impacted by the exit from the shareholding in DNB, the company will continue to maintain a 5G wholesale access agreement with the 5G network operator.

"This [wholesale access agreement] enables the company to offer commercial 5G services while deploying its own 5G network, ensuring a seamless 5G experience for its customers," U Mobile said in a statement on Wednesday.

It has sold its entire 100,000 shares in DNB to CelcomDigi Bhd (KL:CDB), Maxis Bhd (KL:MAXIS), YTL Power International Bhd (KL:YTLPOWR), and the Minister of Finance Inc (MOF Inc). CelcomDigi, Maxis and YTL Power each acquired 33,333 shares from the transaction, while MOF Inc took one share.

The deal, announced a day ago, will raise MOF Inc's stake in DNB to 41.67% from 34.88%, while CelcomDigi, Maxis and YTL Power will increase their respective stakes to 19.44% from 16.28%.

Meanwhile, U Mobile said it remains committed to the rollout of the second 5G network, which it was appointed to lead by the Malaysian Communications and Multimedia Commission, and that it aims to achieve an 80% coverage of populated areas or CoPA within the next 12 months.

“U Mobile is looking forward to providing enhanced connectivity and innovative services to all Malaysians through its upcoming Next Gen 5G network, contributing to a competitive and digitally empowered future for Malaysia,” the company said.

DNB, a special-purpose vehicle under the MOF, was established in 2021 to deploy the nation’s 5G infrastructure and serve as the sole provider of wholesale 5G services to telecommunications companies.

However, Putrajaya, under the new Pakatan Harapan government, in May 2023 pivoted on the original plan and opted to undertake the 5G network rollout under a dual wholesale network model instead, saying it would foster competition. This decision was made despite no issues found with the DNB model after Prime Minister Datuk Seri Anwar Ibrahim ordered a review of the 5G rollout due to concerns about transparency and the lack of an appropriate tender process.

Hence, while DNB remained responsible for deploying the first network, telcos then took part in a bidding process to vie for the rollout of the second 5G network.

U Mobile was chosen for the role last November, despite it being the smallest among the four major telcos in the country. Last month, U Mobile appointed Huawei Technologies Co Ltd and ZTE Corp as its technology partners for the second 5G network deployment.

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 13.66% of U Mobile through Singer (Malaysia) Sdn Bhd (6.09%), U Telemedia Sdn Bhd (5.59%) and Berjaya Infrastructure Sdn Bhd (1.98%).

Shares in CelcomDigi ended 10 sen or 2.56% higher at RM4, valuing the group at RM46.22 billion.

Maxis shares closed unchanged at RM3.79, giving the group a market capitalisation of RM29.61 billion. Meanwhile, shares in YTL Power closed up seven sen or 1.9% at RM3.75, valuing it at RM30.95 billion.

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