TELEKOM Malaysia Bhd (TM) has issued a termination notice to Digital Nasional Bhd (DNB), effective immediately, pursuant to the terms of the share subscription agreement (SSA) to subscribe to a 20% equity stake in DNB.

This comes after the longstop date to fulfil all conditions precedents under the SSA lapsed, it said in a filing with Bursa Malaysia today.

It said the termination of the SSA is not expected to have any significant effect on earnings, net assets and gearing of TM Group for the financial year ending December 31, 2023.

“TM customers will continue to enjoy 5G services and solutions as the 5G wholesale access agreement with DNB remains intact,” it said.

Meanwhile, in separate a statement, TM said it would look forward to the next process and discussion with the government and the industry on 5G participation across Phase 1 (towards 80% service coverage by DNB) and Phase 2 (shift to two networks) as announced on May 3.

“TM is committed to continue playing an active role in the 5G implementation, leveraging its nationwide fibre infrastructure, extensive digital platforms (data centre, edge nodes) and rollout experience,” it said. – Bernama, May 10, 2023.