Malaysia rules out $2.37 billion takeover of passport supplier

KUALA LUMPUR – Malaysia’s government has ruled out a potential acquisition of Datasonic Technologies Sdn Bhd, 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 Aug 22.Datasonic’s parent, NexG Bhd, said on Aug 21 that the government was considering a potential RM7.5 billion (S$2.37 billion) acquisition.The Ministry of Finance had asked Datasonic at a July 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 Aug 21.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 through 2032.The agreements are collectively worth about RM2.46 billion.Datasonic 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 Aug 21. BLOOMBERG