DNB decision to terminate equity deal with TM stands, says Gobind

 

Digital Nasional Berhad’s (DNB) decision to terminate its share subscription agreement (SSA) with Telekom Malaysia Berhad (TM) stands although TM can appeal the decision, said Digital Minister Gobind Singh Deo.

“While we cannot stop TM from appealing, the decision made by DNB to terminate the SSA stands.

“They had asked for an extension of time, which was granted. However, they could not comply within the extended period, so the SSA between them and DNB was terminated,” he said.

The minister said this at a press conference today after officiating the “Connected Seaports Forum – Advanced Technological Use Cases Powered by 5G” in Kuala Lumpur.

Last week, TM received a termination notice from DNB for the SSA signed on Dec 1, 2023, for a stake in DNB. This came after TM’s request and appeal for an “extension of the conditions precedent longstop date” were rejected.

The request and appeal for another extension was for it to obtain shareholders’ approval at an extraordinary general meeting due to the SSA being a related party transaction.

Invest in digital, 5G tech

At the officiating speech, Gobind said Malaysian seaport operators need to invest in digital and 5G technologies to remain competitive.

At the opening ceremony of Malaysia Maritime Week 2024 last month, our Prime Minister Anwar Ibrahim called for the maritime industry to enhance its resilience and expressed his aspiration for Malaysia’s seaports to be among the top 10 in the world,” he noted.

He said the digitalisation of seaports also adds value to the logistics and supply chain ecosystem.

“One clear example is that more players can move up the value chain with the integration of digital solutions. The digitalisation of seaports will lower the entry barriers for Malaysians to trade online and across borders.

“This will make it easier not just for business owners but also for homemakers who contribute to the family’s household income by participating in e-commerce,” he added.

Gobind said like other sectors critical to the nation’s economy and well-being, the port, shipping, and marine transport industry must take advantage of the world-class connectivity that is already available in the country.

- Bernama