Digi Telecommunications Berhad

active

In January 1994, Mutiara Telecommunications (later to be known as Digi Telecommunications Bhd) was awarded a 20-year national license to provide mobile phone services with a Personal Communications Network. The company was also awarded a 20-year license to provide international phone services and another 15-year license to operate a domestic trunk fiber-optic network. The company was originally a joint venture between the local private Berjaya Group (35%), Swiss Telecom (30%), and state-owned incumbent Telekom Malaysia (35%). In 1999, Swiss Telecom sold its 30% share to Telenor AS of Norway for US$207 million. In June 2001, Telenor paid US$365 million to increase its stake in the company from 32.9% to 61%, leaving the Berjaya Group and other private investors with the remaining 39%. The company launched its PCN network under the brand name DIGI 1800 in May 1995. The company changed its name to Digi telecommunications in 1998. The company was listed on the Kuala Lumpur Stock Exchange Main Board on 18th December 1997. Mutiara Swisscom, the listing vehicle, made a public issue of 50 million new ordinary shares at an issue price of $M5.50 ($US1.6) per share, which represented 10% of the enlarged capital of Mutiara Swisscom in 1997. Of the proceeds, RM$104 million (US$80 million) was planned to be used for the rollout of network infrastructure and other operating equipment, RM$175 million was to be used for the personal communications network (PCN), R$M60 million for the fixed line network, R$M4 million for information technology, R$M28 million as working capital and R$M8 million to partly finance the listing expenses. The company also received a US$295 million non-recourse loan in October 1997. The total investment in the international and fixed line services was US$70 million by 1997. In 2003, DiGi opted to invest in EDGE (Enhanced Data Rates for GSM Evolutiontechnology), which was touted as a much cheaper way to offer third generation (3G)-like services. The government had awarded two 3G spectrums to DiGi competitors Telekom Malaysia and Maxis in March of 2003. In April 2005, DiGi entered into a new fixed rate term loan of RM300 million to refinance previous borrowings which were partially subject to a floating rate. As of December 31, 2005, DiGi had a customer base of 4.8 million, coming in third behind Celcom Malaysia Bhd. and Maxis Communications Bhd. Of the company's subscriber base, only 7%, or 350,000 subscribers, were post-paid. In 2007, Telenor reduced its stake in Malaysian cellco DiGi.Com from 61% to 49%. http://www.digi.com.my/ Capex 2013: Wireless Intelligence