KUALA LUMPUR (June 13): Integrated information and communications technology (ICT) solution provider Datasonic Group Bhd has received a letter from the Home Ministry to supply more passport chips, with a contract value of up to RM37.62 million.

In a filing with Bursa Malaysia on Tuesday (June 13), Datasonic said its wholly owned subsidiary Datasonic Technologies Sdn Bhd (DTSB) had received and accepted the letter from the ministry in relation to the amendment to a previous contract entered into in November 2021 for the supply of 12.5 million Malaysian passport chips from Dec 1, 2021 to Nov 30, 2023.

Datasonic added that under the terms of the latest letter, DTSB is required to furnish a performance bond for RM3.53 million to the Home Ministry, with the validity period to be extended by another year until Nov 30, 2024.

In December 2015, DTSB bagged the original RM318.75 million contract from the ministry to supply 12.5 million passport chips from Dec 1, 2016 to Nov 30, 2021. In November 2021, DTSB received a letter of extension to supply passport chips for another two years, from Dec 1, 2021 to Nov 30, 2023, with a contract value of up to RM31.39 million.

"The change in the contract's ceiling value is expected to contribute positively towards earnings and net assets per share of the Datasonic group for the financial year ending March 31, 2024, and will not have any effect on the share capital and substantial shareholders’ shareholdings in Datasonic," said the group.

Shares in Datasonic closed half a sen or 1.08% lower at 46 sen on Tuesday, giving it a market capitalisation of RM1.36 billion.

Read also:
Datasonic’s passport supply contract revised upwards to include maintenance services