KUALA LUMPUR (April 13): NexG Bhd (KL:NEXG) has initiated another internal review to assess the impact of recent adverse media coverage and negative market perception surrounding the group.
In a statement on Monday, the company said the review aims to evaluate potential reputational implications, address stakeholder concerns, and formulate appropriate communication responses.
NexG emphasised that the exercise is unrelated to the fair value loss it previously reported, noting that the loss had been properly accounted for, reviewed by its board, and disclosed in its quarterly filing with Bursa Malaysia.
“Instead, the review was undertaken to assess the impact of recent adverse media publicity and negative market perception on the company”.
The company — formerly known as Datasonic Group Bhd — stressed that the review should be seen as a proactive governance and communications measure, and not as an indication of any irregularities in its financial reporting.
The latest review follows an earlier internal assessment of NexG’s investments in quoted shares, which was facilitated by executive chairman and chief executive officer Datuk Abu Hanifah Noordin.
Those investments resulted in NexG recording a substantial paper loss of RM145.6 million in its latest quarterly results, pushing the group into the red.
The situation culminated in the resignation of seven directors, while Hanifah was later redesignated as the deputy executive chairman, retaining his role as the group CEO.
Abu Hanifah was redesignated on March 27 after his brief suspension was lifted on March 11.
Datuk Ishak Ismail was appointed as the executive chairman after emerging as NexG’s largest shareholder with a 20.4% stake via Raya Aviation Holdings Sdn Bhd on March 4.
NexG reiterated on Monday that the reported losses should be viewed in the context of non-cash fair value adjustments arising from temporary — and now resolved — shareholder-related uncertainties.
The boardroom reshuffle continued on April 1 with the resignation of two directors — Mohamed Najib Ishak, who stepped down less than a month after joining the board, and Datuk Seri Muthanna Abdullah. This was followed by the appointment of two new directors the next day: Datuk Ramli Din, a former senior police officer, and Mohamad Tirmizi Ishak, who is the son of Ishak.
NexG — Malaysia’s sole supplier of passports and MyKad-related products — has been in the spotlight over the past two months. The scrutiny began in February following reports linking the group to the activities of a supposed "corporate mafia" — an alleged syndicate of businessmen that purportedly used enforcement agencies to pressure directors of listed companies into surendering control.
Shares of NexG were half a sen or 2.04% higher at 25 sen at the time of writing on Monday, giving it a market capitalisation of RM909.45 million. The counter has fallen over 10% year to date.