DNB Heads to Private Status After CelcomDigi and Maxis Buy MOF Shares

Key Takeaways

• CelcomDigi, Maxes acquire MOF's 41.67% stake in DNB.
• Each telco pays MYR 327.9 million for MOF shares.
• Total investment exceeds MYR 677.5 million per shareholder.
• DNB becomes fully private, reshaping Malaysia's 5G wholesale market.
• Dispute with Telekom Malaysia over lease termination persists.

Summary

Digital Nasional Berhad (DNB), Malaysia's 5G wholesale operator, is set to become a fully private company after CelcomDigi and Maxis each exercised a put option to buy the 41.67% stake held by Minister of Finance Incorporated (MOF Inc). The transaction, completed on 9 March 2026, required each telco to pay roughly MYR 327.9 million and assume MOF’s outstanding shareholder loans. YTL Power, the third shareholder, is expected to follow suit, which would split DNB ownership three‑way among the telcos. The move coincides with a lingering dispute between DNB and Telekom Malaysia over an early‑termination notice on a ten‑year access lease.

Pulse Analysis

Digital Nasional Berhad was launched in 2024 as a government‑backed, shared‑infrastructure venture to accelerate 5G deployment across Malaysia. Initial share subscription agreements allocated 41.67% to Minister of Finance Incorporated and the remainder to four telcos, creating a public‑private partnership designed to lower network costs for smaller operators. The put option clause, triggered by MOF in December 2025, forced the remaining shareholders to purchase the government stake, effectively ending public ownership and paving the way for a fully private governance model.

The financial outlay associated with the buy‑out is substantial. Each of the three telcos—CelcomDigi, Maxis and YTL Power—paid roughly MYR 327.9 million for MOF’s shares and assumed related shareholder loans, pushing total per‑partner investment beyond MYR 677.5 million when earlier SSA payments and the August 2025 capital injection are included. This deepened capital base equips DNB with the resources needed to expand its wholesale network, support new MVNO entrants, and potentially fund the upcoming launch of U Mobile’s competing 5G platform. Consolidated ownership also streamlines decision‑making, allowing faster rollout of fiber backhaul and spectrum sharing arrangements.

However, DNB’s transition is not without friction. A dispute with Telekom Malaysia over an early termination of a ten‑year lease highlights the contractual complexities inherent in shared‑infrastructure models. While DNB asserts that TM has not met termination conditions, TM contends the opposite, promising to pursue resolution through the agreement’s dispute mechanisms. The outcome could set precedents for future lease negotiations and impact the attractiveness of DNB’s wholesale services to other operators, influencing the broader trajectory of Malaysia’s 5G ecosystem.