Kuala Lumpur, 07 October 2025 — CelcomDigi Bhd (CDB) revealed that its subsidiary, CelcomDigi Mobile Sdn Bhd, has been served with an arbitration notice by IMMA Technology Sdn Bhd, which is seeking RM72.59 million in alleged lost profits. Alternatively, IMMA claims RM28.28 million for “wasted expenditure” tied to a services agreement. CelcomDigi maintains it will vigorously contest the claim and regards the impact as non-material to its operations or net assets.
The dispute centers on a March 2022 services agreement between CelcomDigi Mobile and IMMA for credit advance services, structured with no upfront payments but a revenue-sharing arrangement once the service launched. According to the filing, the service launch was postponed ahead of the Celcom-Digi merger, prompting CelcomDigi to issue a new Request for Proposal (RFP) in November 2023 with an expanded scope covering both subscriber bases. Despite being invited, IMMA opted not to submit a proposal in the RFP process, CelcomDigi said.
In a statement to Bursa Malaysia, CelcomDigi asserted the arbitration claim will not materially affect its day-to-day operations or net assets per share for the fiscal year ending 31 December 2025.
Following the announcement, CDB’s share price rose modestly, closing up 3 sen or 0.82% at RM3.69, valuing the company at approximately RM43.29 billion.
What It Means & What to Watch
For investors and telecom watchers, this development warrants close monitoring:
- Legal & financial exposure
While CelcomDigi describes the claim as “non-material,” RM72.6 million is not trivial relative to many telecom segment margins. If IMMA succeeds (in full or partial), it could affect near-term earnings or force reserves. - Contractual risk precedence
The case highlights the legal exposure inherent in service and revenue-sharing agreements, especially when a projected service fails to launch or is revised. Telecom operators and vendors must ensure strong contractual protections. - Merger linkage complications
The delay of the service launch ahead of the Celcom-Digi merger adds complexity, as parties may dispute whether performance obligations were waived, modified, or renegotiated post-merger. Legal argument may hinge on the RFP process and whether inviting IMMA but excluding its bid was procedurally fair. - Market sentiment & valuation risk
Though markets reacted positively on the day, prolonged arbitration or court rulings against CDB could erode investor confidence or spur valuation discounts, particularly in speculative capital allocation. - Disclosure & provisions
Watch future quarterly filings for any additional disclosures, contingent liabilities, or accounting provisions that might reflect management’s view on settlement probability or downside exposure.
