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The Malaysian government is exploring options to acquire passport and MyKad supplier Datasonic Technologies Sdn Bhd from parent company NexG Berhad
NexG Berhad disclosed in a bourse filing that the Finance Ministry (MOF) requested an indicative price during a meeting in July.
According to Reuters, NexG management provided an internal assessment valuing the identity document supplier at RM7.5 billion (approximately USD1.79 billion).
NexG emphasised that the internal valuation does not constitute a firm offer, agreed transaction value, or independent valuation
"Any potential transaction remains subject to further discussions and negotiations between the relevant parties and/or an independent valuation, where appropriate," NexG said.
Putrajaya also requested assessments on potential compensation if it terminates the MyKad supply contract, alongside indicative pricing to acquire a controlling stake in NexG.
Meanwhile, NexG group executive chairman Datuk Ishak Ismail said in a statement that the company "will engage constructively and responsibly to reach an outcome that is right for the country and fair to all who have helped build the company."
In 2025, Datasonic secured two six-year contracts worth around RM2.5 billion to supply passports and MyKad until 2032
NexG warned that disposing of its core business unit could materially impact group operations, financial performance, and listing status.
According to The Edge Malaysia, the potential buyout comes following a boardroom dispute at NexG. Several shareholders had challenged the organisation's leadership, alleging that there were attempts to take over the company by a "corporate mafia".
The dispute saw Ishak emerging as a substantial shareholder with a 23.7% indirect stake.
