Does CelcomDigi’s filing indicate any impact on 2023 earnings?

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CelcomDigi's Filing Indicates No Significant Impact on 2023 Earnings

CelcomDigi Bhd's subsidiaries, Digi Telecommunications Sdn Bhd and Celcom Mobile Sdn Bhd, have terminated their share subscription agreements (SSAs) with Digital Nasional Bhd (DNB). This termination, effective today, was due to the lapse of the long stop date for fulfilling the conditions precedent under the SSAs signed on October 7, 2022. Despite the termination of the proposed subscription of 100,000 new ordinary shares and rights to allotment of DNB shares, the company stated that this is not expected to have any significant effect on the earnings, net assets, and gearing of the CelcomDigi group for the financial year ending December 31, 2023.
Termination of Share Subscription Agreements

Digi Telecommunications Sdn Bhd and Celcom Mobile Sdn Bhd, both subsidiaries of CelcomDigi Bhd, have officially ended their respective share subscription agreements with Digital Nasional Bhd (DNB). This action was formally communicated and became effective on the current date. The companies entered into these agreements on October 7, 2022, with the intention of subscribing to shares in DNB.
Reason for Termination

The primary reason cited for the termination of the SSAs is the expiry of the long stop date. This date represents the final deadline by which all conditions precedent stipulated in the agreements were to be met. As these conditions were not fulfilled within the agreed timeframe, the agreements have now lapsed, necessitating their termination.
Details of the Subscription Agreement

The terminated share subscription agreements involved a proposed subscription for 100,000 new ordinary shares in Digital Nasional Bhd. Additionally, the agreements covered up to 291.57 million rights to the allotment of DNB shares. These terms outline the extent of the intended investment and participation by CelcomDigi's subsidiaries in DNB.
Projected Financial Impact

CelcomDigi has publicly stated that the termination of these SSAs is not anticipated to cause any material adverse financial consequences. Specifically, the company projects no significant impact on its earnings, net assets, or gearing ratios for the entirety of the 2023 financial year, which concludes on December 31, 2023. This suggests that the financial health and performance of the CelcomDigi group remain stable despite the cessation of these subscription plans.

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Does CelcomDigi’s filing indicate any impact on 2023 earnings?

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