Malaysian government weighing buyout of passport supplier Datasonic, parent firm says
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KUALA LUMPUR, Aug 21 : The Malaysian government is considering acquiring Datasonic Technologies Sdn Bhd, the supplier of the country’s passports and national identity cards, with the firm preliminarily valued at 7.5 billion ringgit ($1.86 billion), its parent company said on Friday.
• NexG Berhad said in a bourse filing it was asked during a meeting with the finance ministry in July to provide an indicative price for the possible acquisition of Datasonic, its wholly-owned unit.
• Malaysia’s finance ministry declined to comment on the potential acquisition.
• The indicative value for Datasonic was based on an internal assessment by NexG’s management and did not constitute an independent valuation, agreed transaction value, or a firm offer, the company said.
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• “Any potential transaction remains subject to further discussions and negotiations between the relevant parties and/or an independent valuation, where appropriate,” NexG said.
• In 2025, Datasonic was awarded two six-year contracts to supply Malaysia’s passports and national identity cards, known as MyKad, for around 2.5 billion ringgit until 2032.
• NexG said the government had also requested assessments in respect of two other scenarios: any compensation payable in the event of the government terminating its MyKad supply contract as well as an indicative price for possible acquisition of a controlling block of shares in NexG.
• NexG said Datasonic was the core business of the group, and warned any disposal of the unit may have a material impact on its business operations, financial performance, and listing status.
• The company would undertake steps to comply with listing rules and applicable laws and regulations if the proposed deal proceeds, it said.
($1 = 4.0420 ringgit)
Source: Reuters
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