What caused the Oct 7, 2022 SSA conditions to lapse?

Question

Accepted Answer

The Lapse of Conditions Precedent in the CelcomDigi-DNB Share Subscription Agreement

The share subscription agreement (SSA) between subsidiaries of CelcomDigi Bhd and Digital Nasional Bhd (DNB), originally signed on October 7, 2022, has been terminated. This termination occurred because the stipulated long stop date for fulfilling all conditions precedent under the agreement has passed. The SSA had proposed the subscription of 100,000 new ordinary shares in DNB, along with up to 291.57 million rights to allotment of DNB shares.
Termination of the Share Subscription Agreement

Digi Telecommunications Sdn Bhd and Celcom Mobile Sdn Bhd, both subsidiaries of CelcomDigi Bhd, have officially terminated their respective share subscription agreements with Digital Nasional Bhd (DNB). This action, effective from May 3, signifies the end of the proposed share acquisition by CelcomDigi's units within the national 5G infrastructure provider. The termination was formally announced following the expiration of a predetermined deadline.
Expiration of the Long Stop Date

The primary reason cited for the termination of the SSA is the lapse of the long stop date. This specific date was established for the fulfillment of all conditions precedent that were agreed upon in the SSA signed on October 7, 2022. As this deadline was not met, the agreement could no longer proceed. The nature of these specific conditions precedent and the reasons for their non-fulfillment by the designated date have not been detailed.
Financial Impact on CelcomDigi

CelcomDigi has indicated that the termination of this share subscription agreement is not anticipated to have a material impact on its financial performance. Specifically, the group's earnings, net assets, and gearing for the financial year ending December 31, 2023, are expected to remain unaffected. This suggests that the financial commitments or potential benefits tied to the SSA were either minimal or have been otherwise accounted for by the company.

Reading history

Hide →

This history is cleared when the page is closed.

What caused the Oct 7, 2022 SSA conditions to lapse?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends