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.
“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.
Reuters
($1 = 4.0420 ringgit)
