(Bloomberg) -- Malaysia’s sole 5G network owner Digital Nasional Bhd. said it terminated a proposed 233 million ringgit ($53.3 million) stake sale to Telekom Malaysia Bhd. after the latter failed to meet necessary conditions to finalize the deal.
In a statement late Friday, DNB said that Telekom Malaysia was unable to obtain shareholder approval for the deal by the stipulated deadline on Aug. 21, and had sought an extension until Dec. 31. DNB said it decided not to extend the deadline, and terminated the deal on Aug. 23.
In a separate filing, Telekom Malaysia said that it needed more time to organize an extraordinary shareholder meeting as the stake sale was a related party transaction. It said its wholesale service subscription with DNB remains in place.
DNB’s biggest shareholder is government-owned Ministry of Finance Inc., which is also indirectly the biggest shareholder in Telekom Malaysia.
DNB said that following the cancellation, four mobile carriers collectively have a 65.1% stake in the 5G network. The four are YTL Power International Bhd., U Mobile Sdn., Maxis Bhd., and CelcomDigi Bhd. They each have a stake of about 16.3%, with Ministry of Finance Inc. owning the rest.
Malaysia previously said that it would start a tender process for a second 5G network as DNB’s 5G coverage has reached 80% of all populated areas.
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