U Mobile is disposing its stake in Digital Nasional Berhad (DNB) before it begins the rollout of Malaysia’s second 5G network. Based on announcements made by CelcomDigi and Maxis via Bursa Malaysia, U Mobile is selling its entire stake (100,000 shares) in the nation’s first 5G wholesale network for RM100,000.
Maxis, CelcomDigi and YTL will each acquire U Mobile’s 33,333 shares for RM33,333, while the Malaysian government via MoF Inc will acquire the remaining 1 share for RM1.
U Mobile sells 100,000 shares to MoF, CelcomDigi, Maxis and YTL
It is also mentioned that MoF Inc shall exercise the Put Option to sell its ordinary shares and transfer its shareholder advance in DNB within one month after 12 November 2025.
Upon completion of the acquisition, the respective (Maxis, CelcomDigi and YTL) telco’s stakes will increase from 16.28% to 19.44%, collectively owning 58.32% of DNB. Meanwhile, MOF’s stake also increases from 34.88% to 41.67%.
With U Mobile’s exit, its existing shareholder advance from its initial RM233 million injection will be deemed as prepayments for 5G access with DNB. Despite the exit, the orange telco can still offer commercial 5G services to consumers and enterprises via DNB with its access agreement.
Previously, Digital Minister Gobind Singh Deo has highlighted that the government has injected RM950 million into DNB. This includes RM500 for initial equity injection in 2021 and a shareholder loan of RM450 million in May 2023 from the Ministry of Finance.
He said the the second 5G network will not be implemented until the funding of the Ministry of Finance into DNB are returned. He added that the government will be reimbursed by telcos and there will be no losses incurred by the government.
The Malaysian government is expected to exit from DNB eventually once the two 5G network model is established, leaving DNB as a fully private entity managed by CelcomDigi, Maxis and YTL.
U Mobile required to exit from DNB to focus on building second 5G network
In December 2023, five telcos – CelcomDigi, Maxis, U Mobile, YTL and TM signed a Share Subscription Agreement to collectively acquire a 70% stake in DNB. Under the agreement, each telco will inject RM233 million each to acquire a 14% stake.
The move to get telcos to take a stake in DNB was one of the requirements set by the government in the transition from a Single Wholesale Network to a Dual 5G network model.
In June 2024, only CelcomDigi, Maxis, U Mobile and YTL have completed the Share Subscription Agreement with DNB, collectively owning 65% of the state-owned 5G network.
On 1st November 2024, the Malaysian Communications and Multimedia Commission (MCMC) named U Mobile as the winner of the second 5G network bid, beating other large contenders such as CelcomDigi and Maxis.
The Malaysian government revoked DNB’s Single Wholesale Network status in January 2025 and the orange telco was issued the award letter to deploy the new 5G network on 29th March 2025.
U Mobile announced last month that it is partnering with Huawei and ZTE to rollout the new 5G network which is based on 5G-Advanced technologies with 5G SA (5G Standalone) implementation from day 1. It aims to achieve 80% 5G population coverage by the second half of 2026
