KUALA LUMPUR (Aug 15): CelcomDigi Bhd (KL:CDB), Maxis Bhd (KL:MAXIS) and YTL Power International Bhd (KL:YTLPOWR) provided additional shareholder advances of RM116.67 million each to Digital Nasional Bhd (DNB) on Friday, to support the state-owned 5G network wholesaler’s operations and working capital needs, as the country transitions to a dual 5G network model.

The capital injection follows the exit of U Mobile Sdn Bhd from DNB’s shareholder line-up.

U Mobile’s 100,000 shares were transferred to CelcomDigi, Maxis, YTL Power and the Minister of Finance Inc (MOF Inc), after the telco was tasked by the government in November last year to build the second 5G network.

According to bourse filings by CelcomDigi and Maxis on Friday, the latest advances bring CelcomDigi’s, Maxis’s and YTL Power’s cumulative investment in DNB to RM350.03 million each, comprising RM233.23 million in earlier shareholder advances and RM116.7 million in the latest round.

CelcomDigi, Maxis and YTL Power each hold 19.44% in DNB.

MOF Inc remains the single largest shareholder with a 41.67% stake and RM750.3 million in combined equity and advances, including RM250.2 million deemed from an existing government loan.

Under the agreed structure, each ringgit of shareholder advance carries the same rights as an ordinary share in DNB, including voting rights at shareholder meetings.

The advances are interest-free and repayable only upon mutual agreement, with potential treatment as prepayments under the shareholders’ access agreements with DNB.

CelcomDigi, in its filing, noted that the emergence of U Mobile’s network could pressure DNB’s revenues if access seekers shift to the second 5G provider.

Additionally, DNB may also require further funding in the coming years to sustain rollout momentum, maintain service quality and optimise operations, CelcomDigi said.

To ensure prudent financial management, CelcomDigi said DNB has established a steering committee with regular reporting to shareholders. Both CelcomDigi and Maxis stressed that the latest advance will not materially affect their earnings, net assets or gearing.

Shares in CelcomDigi closed seven sen or 1.82% lower at RM3.77 on Friday, valuing the group at RM44.23 billion.

Maxis dropped three sen or 0.85% to RM3.48 for a market capitalisation of RM27.27 billion, while YTL Power fell two sen or 0.47% to RM4.20, giving it a market capitalisation of RM36.18 billion.

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