KUALA LUMPUR (March 24): Former Public Service (KPPA) director general Tan Sri Mohd Khairul Adib Abd Rahman has emerged as a substantial shareholder in NexG Bhd (KL:NEXG) — formerly Datasonic Group Bhd — with a 6.11% indirect stake.

This was after Mohd Khairul Adib emerged as a shareholder in Kuantum Juang Sdn Bhd. Kuantum Juang owns 170 million shares in NexG, a company which supplies MyKad identity cards and passport chips to the Malaysian government.

Separately, Mohd Khairul Adib resigned as chairman of MMAG Holdings Bhd (KL:MMAG) to "pursue other interests". Among other listed companies, Mohd Khairul Adib currently is a board member of Westports Holdings Bhd (KL:WPRTS).

Concurrently, Datuk Safian Mohd Yunus, who until earlier this month was the largest shareholder in NexG, has ceased to be a substantial shareholder after exiting Kuantum Juang.

Earlier on March 4, Safian’s other investment vehicle Demi Mekar Sdn Bhd sold 118.35 million NexG shares. Safian now holds a 0.01% direct and 2.78% indirect stake in NexG, a back-of-the-envelope calculation showed.

With the changes, NexG’s executive chairman and CEO Datuk Abu Hanifah Noordin is now the largest shareholder in the company with a 8.13% direct and 0.22% indirect stake. Hanifah emerged as a substantial shareholder on March 11, following transfer of shares from his spouse.

The other substantial shareholder of NexG is the Ministry of Finance-owned special purpose vehicle Urusharta Jemaah Sdn Bhd (UJSB), with a 6.15% stake. UJSB took over the shares from Lembaga Tabung Haji as part of the latter’s balance sheet restructuring exercise in 2019.

Shares of NexG last traded at 26 sen, valuing it at a seven-times trailing price-to-earnings ratio and giving it a market capitalisation of RM762.84 million.