Malaysia rules out US$1.9 billion takeover of passport supplier
Datasonic parent NexG has become the subject of a ‘corporate mafia’ dispute
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MALAYSIA’S government has ruled out a potential acquisition of Datasonic Technologies, which supplies the country’s passports and national identity cards.
The government has decided not to acquire Datasonic Technologies even as it continues to explore measures to safeguard the “security and sovereignty” of citizens’ identities, while ensuring value for public spending, the National Security Council said in a statement late on Saturday (Aug 22).
Datasonic’s parent, NexG, said on Friday that the government was considering a RM7.5 billion (US$1.9 billion) acquisition.
The Ministry of Finance had asked Datasonic at a Jul 24 meeting to provide an indicative price for a possible takeover, NexG said in a stock exchange filing.
The request was made verbally and no written document was issued, it added. The ministry had declined to comment on Friday.
NexG has become the subject of a corporate dispute. It was recently identified by former executive Victor Chin as the target of an “attempted hijacking” by labour tycoon Aminul Islam, as part of what Chin described as a so-called corporate mafia involving law enforcement agencies.
NexG’s management valued Datasonic at about RM7.5 billion, but cautioned it was not an independent valuation.
Datasonic currently holds contracts to supply passports and IDs to the government until the end of 2032. The agreements are collectively worth about RM2.46 billion.
The company is NexG’s core business and main contributor to revenue and earnings. A disposal could affect NexG’s operations and even its continued listing on Bursa Malaysia, it said on Friday. BLOOMBERG
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