Datasonic buys 99.45% stake in smart card maker for RM22m

PETALING JAYA: Datasonic Group Bhd is buying a 99.45% stake in a smart card maker and another dormant company from Formosa Prosonic Industries Bhd (FPI) for RM22 million.
Formosa is disposing a 99.45% stake in Asia Pacific Card & System Sdn Bhd (APCS) and its entire stake in Constant Ahead Sdn Bhd. ACPS manufactures electrical integrated circuit cards, commonly known as smart cards and its related products.
Datasonic said in its filing to Bursa Malaysia that the acquisition is "necessary to safeguard one of Datasonic's sources of
supplies and to increase its competitive advantage in Datasonic's business and contracts." It explained that in a tender situation most competitors would seek to partner APCS.
Datasonic added that the strategic acquisition, better position it to protect its technological know-hows, supply chain and processes in the smartcard business. The company believes the deal will provide synergy and achieve greater economies of scale to meet the demands for higher deliveries of the polycarbonate cards, besides improving its performance through effective cost control measures.
The deal is not subject to shareholders' or any relevant authorities approval.
Meanwhile FPI said it is disposing of the stake in the subsidiary to reduce reliance on non-core businesses and focus resources on its main stream business.
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