KUALA LUMPUR (Aug 16): Over the last 12 months, NexG Bhd (KL:NEXG), formerly known as Datasonic Group Bhd, had spent a total of RM187 million to acquire stakes in three companies, two of them publicly listed.

While companies buying stakes are not out of the ordinary, NexG’s corporate exercises raised eyebrows because they relate to several similar names.

On Aug 1, NexG announced that it had acquired a 32.61% stake in Classita Holdings Bhd (KL:CLASSITA) from Hong Seng Consolidated Bhd (KL:HONGSENG) for RM60.31 million cash, or 15 sen apiece, at a 87.5% premium to the eight sen per share that Classita was trading at that day.

Why did NexG pay such a high premium for Classita?

On top of that, NexG also purchased 414.31 million units of Classita’s warrants from various parties for RM16.47 million.

Most of the warrants changed hands in off-market deals at four sen each. The company also bought some on the open market at 3.5 sen apiece.

In total, the purchase of shares and warrants cost NexG RM76.78 million cash, which was more than its cash and bank balances of RM61.6 million as at March 30, 2025.

The investment was almost double its short-term borrowings of RM39.55 million.

It is mind-boggling that NexG paid such a high premium for a struggling lingerie manufacturer that has now ventured into construction and property development.

Although this is not NexG’s first asset acquisition, it is the biggest and having the most impact on the group, as just the day following the announcement, NexG’s share price plunged 31% to its lowest in four months.

Is there something bigger than meets the eye? 

Read about it in the cover story of The Edge Malaysia this week.

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