NexG Bhd has confirmed that the Government has requested an indicative price for the possible acquisition of its wholly owned subsidiary, Datasonic Technologies Sdn Bhd (DTSB), which is the group’s core business and a major contributor to its revenue and earnings.
The clarification follows media reports on Aug 20 suggesting that the government was exploring a potential RM7.5 billion buyout of Datasonic, the supplier of MyKad and passports.
NexG said the request was made verbally by the Ministry of Finance (MOF) during a meeting with DTSB on July 24, 2026. No written request was issued.
According to the company, MOF asked DTSB to assess three potential scenarios.
These are the compensation that may be payable if the MyKad supply contract between the Ministry of Home Affairs and DTSB is terminated, the indicative price for a possible acquisition of DTSB, and the indicative price for a potential acquisition of a controlling block of shares in NexG, the holding company of DTSB.
NexG said its management subsequently conducted an internal assessment of DTSB using the discounted cash flow (DCF) method.
The assessment considered various factors, including DTSB’s future earnings-generating capabilities, projected cash flows, business sustainability and other factors affecting its business and operations.
Based on the assessment, management arrived at an indicative value of approximately RM7.5 billion for DTSB.
The board said it had reviewed and considered the basis, assumptions and methodology used in the internal assessment and approved the indicative value solely for the purpose of providing an indicative price to the government.
However, NexG stressed that the RM7.5 billion figure does not constitute an independent valuation, an agreed transaction value or a firm offer.
“Any potential transaction remains subject to further discussions and negotiations between the relevant parties and/or an independent valuation, where appropriate,” the company said.
NexG also cautioned that any disposal of DTSB could have a significant impact on the group’s business.
DTSB currently represents the core business of NexG and is its major contributor to revenue and earnings. Consequently, any potential disposal could materially affect the group’s operations and financial performance.
The transaction could also have implications for NexG’s continued listing status on the Main Market of Bursa Malaysia under Paragraph 8.03A of the Main Market Listing Requirements.
Should the proposed transaction progress, NexG said it would undertake all necessary steps to comply with applicable Bursa Malaysia requirements and other relevant laws and regulations.
This could include obtaining approvals from NexG shareholders, Bursa Malaysia Securities and other relevant authorities, where required.
Shares of NexG is current halted on Bursa.
