CelcomDigi, Maxis and YTL set to take over MOF's DNB stake for nearly RM1 billion

With the year coming to an end, CelcomDigi, Maxis and YTL may soon fork out a combined RM1 billion to acquire the government’s stake in Digital Nasional Berhad (DNB) according to a report quoting CIMB Securities.

Following U Mobile’s recent exit from Malaysia’s first 5G network, the government via MOF Inc currently holds a 41.67% stake. Meanwhile, the three remaining telcos – CelcomDigi, Maxis and YTL, hold 19.44% each.

Based on the shareholder’s agreement, the Ministry of Finance may exercise its put option which would require the three telcos to acquire all of its ordinary shares and existing shareholder loans to DNB within one month after 12th November 2025.

CIMB Securities said if MOF does not exercise the put option, the three telcos may exercise a call option within one month after the lapse of MOF’s put option from 13th December 2025.

The research house said that based on MOF’s initial RM500 million equity investment in DNB and an estimated shareholder loan of RM485 million, the three telcos may have to fork out a total of RM985 million or RM328 million each.

Once MOF’s divestment is completed, DNB will be fully private entity and they would compete with U Mobile which is currently building the second 5G network.

CIMB Securities estimates that DNB’s cash cost can be reduced to around RM1.1 billion in the financial year ending 2026 (FY2026), down from RM1.3 billion in FY2024. The reduction is expected to be driven by reduction in staff, licensing fees and interest charges if the government provides soft loans.

To cover the cost while limiting capital expenditure, the 5G minimum commitment fees would need to average between RM270 million to RM290 million across the four access seekers.

However, if the Ministry of Finance does divest its interest in DNB, CIMB Securities estimates that CelcomDigi, Maxis and YTL will have to equity account for a 33.3% share of DNB’s estimated FY2026 net loss of about RM300 million.

The move could affect CelcomDigi’s and Maxis’ FY2026 core net profit by 5% and 7% respectively and the impact would be non-cash in nature.

According to the report, DNB recorded a relatively low revenue of RM342 million in FY2024 as the revenue from the access agreement to supply 5G network capacity is only recognised upon consumption by consumers.

It added that the approach was adopted because there’s a clause allowing access seekers to bring forward unused capacity. CIMB Securities believes that the clause has limited time validity and the upcoming revenue recognition going forward would be based on the minimum commitment fee from access seekers.

CIMB Security reported that for FY2024, DNB posted a loss before income tax, debt and amortisation (LBITDA) of RM484 million and a net loss of RM1.21 billion. It added that DNB had a net debt of RM4.43 billion at end FY2024 and its cash holding of RM435 million.

In terms of coverage, it is reported that DNB has 82.4% 5G population coverage as of August 2025.

Communications Minister Datuk Fahmi Fadzil recently revealed that U Mobile’s ULTRA5G network has already achieved 54.9% 5G population coverage in less than 7 months after receiving the green light from the MCMC. U Mobile targets to achieve 80% 5G population coverage by the second half of 2026.

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