By Ying Xian Wong
A group of five Malaysian mobile network operators have signed a deal to take a combined 70% equity stake in state-owned Digital Nasional, the country's sole provider of 5G services, for about $250 million.
CelcomDigi, Maxis Bhd., U Mobile Sdn Bhd., Telekom Malaysia and YTL Power International will each take stakes of 14% in Digital Nasional for about 233 million ringgit ($49.9 million) apiece, the 5G network supplier said in a statement Friday.
The government will hold the remaining 30% of the company, it said, adding that the share-subscription agreements are expected to be completed between February and April 2024.
The move comes after Malaysia's communications minister, Fahmi Fadzil, announced a policy change that will allow a second 5G network to be formed in the country.
The five mobile network operators plan to use Digital Nasional's infrastructure to roll out 5G services in preparation for a dual network system.
Prior to Friday's deal, CelcomDigi, U Mobile, Telekom Malaysia and YTL had a collective 65% share in the state-owned company, with the government owning the rest plus a "golden share" giving it various rights and privileges.
Write to Ying Xian Wong at yingxian.wong@wsj.com
(END) Dow Jones Newswires
12-03-23 2037ET