Datasonic transforming into NexG with end-to-end digital ID plan, fundraise

Datasonic’s acquisition of Innov8tif Holdings is just one part of a transformation plan that also includes a major capital exercise and a rebrand.

The combined entity should be known as NexG Bhd, Datasonic has proposed, according to Business Today. The 40 million Malaysian ringgits (approximately US $9.1 million) deal to give Datasonic a 51 percent stake in Innov8tif was announced last month.

The acquisition and transformation plan will be funded, at least in part, through a RM554.95 million ($124.7 million) capital exercise. Datasonic plans to issue up to 1.55 billion warrants, worth two shares each. More strategic investments are expected to follow.

Datasonic Executive Deputy Chairman and CEO Datuk Hanifah Noordin says the acquisition of Innov8tif will give the company immediate access to new markets in banking, telecommunications and credit reporting.

“It also positions the group to secure new projects related to integrated identity verification, biometric security and digital onboarding services for enterprises and governments,” Hanifah says.

Independent Non-Executive Director Datuk Puvanesan Subenthiran has been redesignated as executive director.

Company shareholders rejected a proposal to relax the conditions for adopting written resolutions from directors, however, at an extraordinary general meeting, The Edge Malaysia reports. The proposal would have required only a majority of entitled directors to vote for resolutions, rather than a majority of all directors. A regulatory filing noted that 70 shareholders representing 57.74 percent of voting shares voted against the proposal, which was supported by 25 shareholders making up the remaining 42.26 percent.

Employee stock options (ESOs) were approved for Hanifah and executive director Erna Ismail, but rejected for non-executive director Tunku Datuk Nooruddin Tunku Shahabuddin, who was appointed to the role in August.

That was one in a series of changes to Datasonic’s board, ahead of a new plan to provide end-to-end security solutions for physical and digital identity.

Meanwhile, the company has confirmed that talks with Malaysia’s Ministry of Home Affairs for a contract related to the issuance of the country’s biometric passports are ongoing.

Datasonic held contracts ending in 2021 to supply 12.5 million computer chips for passports, 13.42 million booklets, and 9.96 million polycarbonate biodata sheets, worth a combined RM812.83 million ($182.6 million), according to The Edge.

More recently, the company’s biometric gates have been selected for installation at Kuala Lumpur International Airport.

Article Topics

biometrics  |  Datasonic  |  digital identity  |  Innov8tif  |  Malaysia  |  NexG Bhd  |  stocks