Dagang NeXchange in merger talks to boost profit growth target

KUALA LUMPUR: Dagang Nexchange Bhd, Malaysia’s best performing midcap stock, is in merger talks for its technology and energy businesses, betting acquisitions will boost its profit growth target to double digits this year.

For its IT unit, Dagang NeXchange is in advanced talks to acquire a company, while negotiations about the energy unit are still preliminary, said Zainal Abidin Jalil, group managing director. More than 80% of the company’s revenue was from the IT side last year and the rest was from energy.