KUALA LUMPUR: Datasonic Group Bhd has entered into an exclusive agency agreement (EAA) with Dynamic Structures WLL (DSWLL) in Bahrain to expand its security business in 18 countries in the Middle East and North Africa (MENA) region.
Datasonnic said it would work with DSWLL to develop and coordinate business activities of secure identification, personalisation solution, integrated security and surveillance system.
In an exchange filing today, Datasonic said the business activities would focus on Bahrain, Saudi Arabia, Qatar, Kuwait, the United Arab Emirates, Oman, Yemen, Iraq, Syria, Lebanon, Turkey, Egypt, Sudan, Djibouti, Libya, Morocco, Algeria and Tunisia.
This would enable the company to establish a legal presence in the form of an official regional office to undertake all its activities in the MENA region.
The company said the EAA was valid for five years from August 8, 2018, unless the parties mutually agreed in writing with one month prior notice for either extension or termination.
Datasonic said the EAA will enable the company’s strategic move to expand its business internationally and the business development activities in the territory are expected to contribute positively to its group future revenue and profitability.
During its annual general meeting late last month, deputy managing director Chew Ben Ben said the company planned to aggressively expand its business overseas this year, focusing on West Africa, the Middle East and Indonesia.
“Our focus will be on the secured identification (ID) business, driving licences and passports. We will not go into foreign countries if the chance of winning a contract is less than 50 per cent. It is not worth the cost spent,” Chew reportedly said.
At the close of market, Datasonic rose three sen or 3.77 per cent to 82.5 sen, for a market capitalisation of RM1.11 billion.
A total of 4.11 million shares were traded.