“Regarding media reports on the proposed acquisition of Datasonic Technologies, which provides citizen identity services, the (government) has decided not to acquire DTSB,” the National Security Council said in a Saturday statement cited by Named.
The government also reaffirmed its commitment to safeguarding the security and sovereignty of Malaysians’ identities, saying the matter would be governed through legal, financial, governance and security frameworks.
Datasonic holds government contracts to supply passports and identity cards through 2032, with the agreements collectively worth about RM2.46 billion, according to Bloomberg.
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Malaysian passports. Photo courtesy of the official portal of the Sarawak government |
NexG, Datasonic’s parent company, earlier said in a bourse filing late Friday that the finance ministry had asked it during a July meeting to submit an indicative valuation for a potential acquisition of the wholly owned unit.
The RM7.5 billion figure was an internal estimate by NexG’s management, not an independent valuation, agreed transaction price or firm offer, the company said.
NexG described Datasonic as a core part of its business and warned that selling the unit could materially affect its operations, financial performance and listing status.
NexG and Datasonic welcomed the government’s decision not to proceed with the takeover, saying the subsidiary would remain focused on maintaining high standards of security, integrity and reliability.
“With the continuation of the raw identity card production contract for Malaysia, NexG can now continue with its strategic expansion plans in the domestic and international sectors, as previously planned,” NexG said in a statement on Sunday, as quoted by the New Straits Times.