KUALA LUMPUR (May 31): Datasonic Group Bhd’s wholly owned subsidiary, Datasonic Technologies Sdn Bhd (DTSB) announced that it has received and accepted the Letter of Extension (LOE) dated May 29, 2023 from the Home Ministry (KDN) for an additional contract value of RM9.94 million.

The LOE is in regards to the comprehensive maintenance services of card personalisation centres at the National Registration Department for a period of six months commencing from June 1, 2023 to November 30, 2023.

The original contract was valued at RM39.75 million and after including the extension of RM9.94 million, it would bring the total contract value to RM49.69 million, including a 6% sales and service tax.

Under the terms of the LOE, DTSB is required to furnish a performance bond for the amount of RM993,764.42 to KDN with the validity period being extended to November 30, 2024.

The group said that the contract is expected to contribute positively towards its future earnings and net assets per share of Datasonic Group for the financial year ending March 31, 2024, and will not have any effect on the share capital and substantial shareholders’ shareholdings of Datasonic Group.

Previously, the initial contract announced on June 2, 2021, was for a period of 24 months from June 1, 2021 to May 31, 2023.

At the time of writing, Datasonic Group's share price stood at 44 sen, 1.15% higher from Tuesday’s (May 30) close of 43.5 sen, giving it a market capitalisation of RM1.29 billion.

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Datasonic secures RM39.75m maintenance service contract from Home Affairs Ministry