KUALA LUMPUR (Oct 7): Datasonic Group Bhd (KL:DATASONIC) has terminated its proposed acquisition of a RM28.5 million industrial property in Petaling Jaya after failing to get Fire and Rescue Department approval for fire safety equipment.
The termination notice was issued by Datasonic Technologies Sdn Bhd (DTSB), the group’s wholly-owned subsidiary, to the vendor Pixio Sdn Bhd on Tuesday, according to Datasonic's bourse filing.
Under the termination, Pixio is required to refund the RM2.85 million deposit paid towards the purchase price to DTSB or its solicitors within 14 days of receiving the termination notice.
Upon receipt of the full refund, DTSB will execute the deed of termination, after which the sale and purchase agreement will cease to have effect and neither party will have further claims against the other arising from the agreement.
The proposed acquisition was first announced in July 2025, when Datasonic, then known as NexG Bhd, said DTSB had entered into a sale and purchase agreement with Pixio to acquire the property.
The cancellation of the deal comes about a week after shareholders at an annual general meeting voted to rename the group Datasonic.
Sitting on 6,182.5 sq m of land, the property comprises a two-storey factory, three-storey office block, two-storey warehouse and guardhouse.
Datasonic, which is the sole supplier of MyKad identity cards and passport booklets, had said the acquisition was part of a strategic initiative to enhance production capacity and efficiency.
At the time, the group said the RM28.5 million purchase price was funded through internally generated funds, bank borrowings and/or private placement.
Datasonic swung to a net loss of RM2.82 million for the quarter ended June 30, 2026 (1QFY2027) from a net profit of RM64.88 million a year earlier. This was mainly due to a fair value loss on other investments and lesser supply of smart cards and passports.
Other income fell from RM40.18 million to RM577,000 during 1QFY2027. Datasonic recorded a RM39.94 million fair value gain on other investments in 1QFY2026, against a RM1.45 million fair value loss on the same line this quarter.
Revenue fell 44.3% to RM49.24 million from RM88.45 million a year earlier.
Datasonic closed half a sen or 1.69% higher at 30 sen on Wednesday for a market capitalisation of RM1.14 billion.