By Ying Xian Wong


A group of five Malaysian mobile network operators have signed a deal to take a combined 70% equity stake in state-owned Digital Nasional, the country's sole provider of 5G services, for about $250 million.

CelcomDigi, Maxis Bhd., U Mobile Sdn Bhd., Telekom Malaysia and YTL Power International will each take stakes of 14% in Digital Nasional for about 233 million ringgit ($49.9 million) apiece, the 5G network supplier said in a statement Friday.

The government will hold the remaining 30% of the company, it said, adding that the share-subscription agreements are expected to be completed between February and April 2024.

The move comes after Malaysia's communications minister, Fahmi Fadzil, announced a policy change that will allow a second 5G network to be formed in the country.

The five mobile network operators plan to use Digital Nasional's infrastructure to roll out 5G services in preparation for a dual network system.

Prior to Friday's deal, CelcomDigi, U Mobile, Telekom Malaysia and YTL had a collective 65% share in the state-owned company, with the government owning the rest plus a "golden share" giving it various rights and privileges.


Write to Ying Xian Wong at yingxian.wong@wsj.com


(END) Dow Jones Newswires

12-03-23 2037ET