DATASONIC PLANS TO TAP AFRICA’S HUGE POTENTIAL

CYBERJAYA: Datasonic Group Bhd has set plans to tap the African market, particularly Tanzania for the data and microchips segment.

Describing it as its first move abroad, deputy managing director Chew Ben Ben said Tanzania has massive potential to push the company further.

“This will be our first move abroad and we have identified Africa as having massive potential for growth, especially in the data and microchips segment,” he said during its ninth annual general meeting, here, yesterday.

“We are keen on Tanzania because of its position as the gateway into Africa, as most travellers going to Africa will pass through Tanzania. That’s why we are working on a collaboration with their border control.”

The group is in the midst of finalising its 67 per cent stake buy into a Tanzanian border control-related security contract.

Datasonic, a secure identity and personalisation system solutions provider, is offering US$192 million (RM806.4 million) for the stake.

Once it materialises, the deal could bring in an earnings accretion of RM10 million to RM15 million a year over eight to 10 years.

Chew said infrastructure plays a big part in the company’s decision-making. “China as you know, have long been making inroads into Africa and has over the years built various infrastructures,” he said.

“We intend to leverage on the infrastructure that China has built in Tanzania and Africa for our own business expansion.”

He said if all goes well with Tanzania, the company will expand into other countries in the continent. For the first quarter ended June 30, the firm saw its net profit drop 27.2 per cent to RM15.12 million compared with RM20.79 million made last year, on the back of lower revenue.

The group’s quarterly revenue was down 21 per cent to RM60.1 million, from RM76.08 million a year ago, on lower contribution from the supply of smart cards, consumables, passports and personalisation services.