Politics · Malaysia Bureau
NexG relieved as government shelves Datasonic acquisition plan
Technology firm NexG has welcomed the government's decision to abandon a potential takeover of its wholly owned subsidiary Datasonic. The move comes after NexG valued the company at RM7.5 billion in response to official acquisition inquiries.
LSN Malaysia ·
NexG has expressed satisfaction following the government's announcement that it will not proceed with acquiring Datasonic, the technology subsidiary wholly owned by the listed company.
The development concludes a period of uncertainty that began when government authorities approached NexG with a request for an indicative valuation of Datasonic for potential acquisition purposes. NexG subsequently valued the subsidiary at RM7.5 billion, a substantial figure that reflected the company's assessment of Datasonic's strategic worth and operational capabilities.
The decision to shelve the acquisition represents a significant outcome for NexG shareholders, allowing the company to retain full control of its subsidiary and continue pursuing its own strategic objectives without disruption. Datasonic, a key asset within the NexG portfolio, operates in the technology solutions sector serving regional markets.
The government's decision suggests a reassessment of its acquisition priorities, potentially reflecting budgetary constraints or shifts in policy direction regarding technology sector investments. Industry observers had monitored the situation closely, given the substantial valuation involved and potential implications for the broader regional technology landscape.