Malaysian Government Weighs $1.86 Billion Buyout of Passport Supplier Datasonic
The Malaysian government is evaluating a potential 7.5 billion ringgit acquisition of Datasonic Technologies, a move that could fundamentally alter the listing status and financial trajectory of its parent company, NexG Berhad.
The Malaysian government is considering the acquisition of Datasonic Technologies Sdn Bhd, the primary supplier of the nation’s passports and national identity cards. Parent company NexG Berhad disclosed in a regulatory filing that the finance ministry requested an indicative price for the wholly owned unit during a meeting in July.
NexG management preliminarily values the transaction at 7.5 billion ringgit, equivalent to $1.86 billion. The company emphasized that this figure stems from an internal assessment and does not represent an independent valuation, a firm offer, or an agreed transaction value.
"Any potential transaction remains subject to further discussions and negotiations between the relevant parties and/or an independent valuation, where appropriate," NexG stated in its filing. The Malaysian finance ministry has declined to comment on the potential acquisition.
This prospective buyout carries substantial implications for NexG Berhad. The company warned that Datasonic constitutes the core business of the group, and any disposal of the unit could materially impact its operations, financial performance, and continued listing status.
Beyond the outright acquisition of Datasonic, the government has explored alternative scenarios. NexG noted that officials also requested assessments regarding potential compensation should the government terminate the existing MyKad supply contract, as well as an indicative price for acquiring a controlling block of shares directly in NexG.
The stakes are underpinned by significant existing government commitments. In 2025, Datasonic secured two six-year contracts worth approximately 2.5 billion ringgit to supply passports and MyKad national identity cards through 2032.
For investors, the dual possibility of a subsidiary buyout or a change in parent-company control introduces profound uncertainty. Market participants will closely monitor whether the state opts for a targeted purchase or a broader takeover, as both paths would drastically reshape the company's equity profile. NexG affirmed it would take necessary steps to comply with all listing rules and applicable regulations should the proposed deal advance.
