KUALA LUMPUR: NexG Bhd today clarified that the request for an indicative price for the possible acquisition of its wholly owned subsidiary, Datasonic Technologies Sdn Bhd (DTSB), by the government was made by the Ministry of Finance (MOF) last month.
"The request was conveyed to DTSB verbally at a meeting with MOF held on July 24, 2026, and was not made by way of a written document,” the security-related integrated technology solutions provider said in a reply to a query from Bursa Malaysia today.
DTSB is the provider of the MyKad national identity card.
Yesterday, NexG said DTSB had been valued at RM7.5 billion as it owns valuable intellectual property, while its identity technology also spans International Civil Aviation Organisation (ICAO)-compliant e-passports and biometric systems using multimodal biometrics and facial recognition.
NexG said MOF requested DTSB at the meeting to provide an assessment of three potential scenarios, namely the compensation that might be payable in the event of termination of the MyKad supply contract between the Ministry of Home Affairs and DTSB.
The other scenarios were the indicative price for the possible acquisition of DTSB and the indicative price for the possible acquisition of a controlling block of shares in NexG, the holding company of DTSB.
"Following an internal assessment conducted by the management of the company using the discounted cash flow method, which took into consideration various factors.
"This includes, amongst others, DTSB's future earnings-generating capabilities, projected future cash flows, business sustainability and other relevant factors affecting the business and operations of DTSB, the management has assessed the indicative value of DTSB at approximately RM7.5 billion,” the group said.
NexG said the board also recognises that DTSB currently represents the core business of the group and is the major contributor to the group's revenue and earnings.
Accordingly, any disposal of DTSB, if materialised, might have a material impact on the group's business operations and financial performance and might also affect the group's level of operations and its continued listing status on the Main Market of Bursa Malaysia Securities Bhd. - Bernama
