Malaysian government weighing buyout of passport supplier Datasonic, parent firm says

The Malaysian government is contemplating the purchase of Datasonic Technologies Sdn Bhd, the firm responsible for producing the country's passports and national identity cards, with an estimated value of RM7.5 billion, according to its parent company NexG Berhad. In July, NexG was invited to present a suggested price for the potential acquisition of Datasonic during a meeting with the finance ministry.

However, the ministry has not commented on the possibility of the deal. NexG's internal evaluation, which formed the basis for the RM7.5 billion figure, is not an independent valuation or a firm offer, the company clarified. The opportunity to acquire Datasonic still hinges on further negotiations between the involved parties and the attainment of an unbiased assessment, if necessary.

Notably, Datasonic secured two six-year contracts in 2025 to supply Malaysia with passports and MyKad, the national identity cards, for approximately RM2.5 billion until 2032. The government has also solicited evaluations for two alternative scenarios: compensation for potential termination of Datasonic's supply contract for MyKad, and an estimated price for acquiring a controlling stake in NexG.

NexG emphasized that Datasonic constitutes their core business, warning that any disposal of the unit could significantly affect their operational activities, financial results, and listing status. If the proposed transaction proceeds, NexG pledged to adhere to listing rules and applicable laws and regulations.