NexG Bhd shares surged 12% to 0.32 sen on Friday following reports that the government was considering a potential takeover of its subsidiary Datasonic Technologies Sdn Bhd (DTSB), which supplies MyKad and Malaysian passport-related services, at a reported valuation of RM7.5 billion.
The Main Market-listed group subsequently confirmed in a Bursa Malaysia filing that the possibility of a government takeover had been raised during discussions with government representatives.
However, NexG said the discussions were verbal in nature, with no formal agreement or commitment reached between the parties.
The uncertainty was subsequently addressed by the National Security Council (NSC), which said the Government had decided not to take over DTSB.
The NSC said the government remains committed to safeguarding the security and sovereignty of Malaysians’ identities, describing citizens’ identity information as a strategic national asset.
It said the government would continue to regulate the protection of identity information through legislative, financial, governance and security frameworks, while ensuring that parties involved in providing identity-related services continue to deliver secure and trusted services.
The decision effectively removes uncertainty surrounding the reported RM7.5 billion takeover and allows Datasonic to continue its existing role in providing identity-related services to the government.
NexG has welcomed the government’s position, given that the government contract for the supply of MyKad and Malaysian passport-related services represents the largest contract for Datasonic and the wider NexG group.
