KUALA LUMPUR (Sept 2): All liabilities of Digital Nasional Bhd (DNB) will be fully borne by its remaining shareholders once the government completes its divestment from the company, Digital Minister Gobind Singh Deo said.
According to Gobind, since its inception, DNB has received an initial capital injection of RM500 million in equity from the government in 2021, followed by an RM450 million shareholder loan from the Minister of Finance Inc (MOF Inc) in May 2023.
In addition, DNB secured an RM800 million receivables purchase agreement in 2021 and a government-guaranteed loan of RM1.5 billion in 2023, both of which have been fully utilised.
“The telco companies that are shareholders of DNB are committed to financing and operating the company without any additional financial implications for the government once the government relinquishes its shareholding, as stipulated in the shareholders agreement,” Gobind said in a written parliamentary reply dated Aug 14 to Wan Ahmad Fayhsal Wan Ahmad Kamal (PN-Machang).
Wan Ahmad Fayhsal had asked about DNB’s financial position, particularly the company’s accumulated debt.
Currently, three mobile network operators (MNOs) — CelcomDigi Bhd (KL:CDB), Maxis Bhd (KL:MAXIS) and YTL Power International Bhd (KL:YTLPOWR) — each hold 19.44% in DNB.
This comes after the three MNOs recently provided additional shareholder advances of RM116.67 million each to DNB — on top of earlier advances of RM233.23 million each — following the exit of U Mobile Sdn Bhd from the company’s shareholder line-up.
U Mobile was tasked by the government in November last year to build the country’s second 5G network.
The latest injections were meant to support the state-owned 5G network wholesaler’s operations and working capital needs, according to the MNOs’ filings to Bursa Malaysia.
MOF Inc remains the single largest shareholder with a 41.7% stake.
Addressing DNB’s latest financial standing, Gobind stressed that the company is well-managed and remains aligned with its business plan, even after adjustments to reflect the introduction of the dual 5G network model, though he did not elaborate further.
He also emphasised that the three MNOs have pledged full support to ensure DNB’s continued operations.
“The shareholders agreement between DNB and its shareholders not only provides for the government’s divestment in the future but also serves as a safeguard mechanism to ensure the company’s financial sustainability,” Gobind added.
It is noteworthy that Gobind had previously assured that a second 5G network would not be permitted to roll out until the MNOs in DNB repay the government funding provided for the company’s operations.
However, he did not disclose a timeframe for when this repayment is expected to be completed in his latest reply.
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