KUALA LUMPUR (March 5): A boardroom tussle has erupted at NexG Bhd (KL:NEXG) — which holds RM2.46 billion worth of contracts in the supply of Malaysian passport booklets and identity cards — following the emergence of Raya Aviation Holdings, which is linked to Datuk Ishak Ismail, as its largest shareholder.

On Thursday, a day after Raya Aviation's entry, NexG’s board suspended executive chairman and CEO Datuk Abu Hanifah Noordin amid a review of the company’s investments in other public-listed companies, according to a bourse filing.

The board also appointed an external professional to verify the March 4 shareholding changes related to Raya Aviation’s acquisition of a 20.4% stake by taking control of two private companies — Skyelimit Alliance Sdn Bhd and Trendtrove Tradin Sdn Bhd.

Skyelimit Alliance was linked to NexG’s former executive deputy chairman Tan Sri Mohd Khairul Adib Abd Rahman, while Trendtrove was linked to executive director Datuk Ab Hamid Mohamad Hanipah.

The other faction, comprising Hanifah, the founder of NexG, Velocity Capital Sdn Bhd — the financing arm of Velocity Capital Partners Bhd (KL:VELOCITY) — and Siti Nur Aishah Ishak called for an extraordinary general meeting to remove seven directors and appoint eight new ones. They collectively hold at least 10% of the company.

Ishak, a known close associate of Prime Minister Datuk Seri Anwar Ibrahim in the 90s, is among the eight directors whom Hanifah, together with Siti Nur and Velocity Capital, seek to appoint to NexG’s board.

The others include Raya Airways group managing director Mohamad Najib Ishak, Mohd Azmi Mat Nayan, Lt Col (R) Roseli Abdul Gani, Datuk Anas Alam Faizli, Datuk Amirudin Abdul Wahab, Lt Col (R) Khairudin Dahlan and Datuk Seri Muthanna Abdullah.

The seven directors they seek to remove include Datuk Chong Loong Men, Aswath Ramakrishnan, and Kunal Tayal, who joined the board in mid-November last year. Syed Farid Syed Ahmad Al-Attas, Mohamed Fairuz Mohamed Fauzy, Badrul Hisham Abdul Aziz and Mohd Zafil Ibrahim are also on the list. They were appointed on Oct 16, 2025. Ab Hamid was not among the directors proposed for removal.

The trio are proposing that the EGM be held on April 3, 2026.

However, the existing board said in the bourse filing that it has “great concerns” over the notices’ validity and is seeking independent legal advice on the matter. “In the meantime, the company will not publish the notices (of EGM) in whatever manner/form until the validity is ascertained,” it added.

Raya Aviation, parent of cargo carrier Raya Airways, is 99-owned by CIMB Islamic Trustees Bhd, according to Companies Commission of Malaysia's records. Raya Aviation's directors comprise Mohamad Najib Ishak and Mohamad Yusof Ishak. According to previous reports, Mohamad Najib, Mohamad Yusof and Siti Nur Aishah are Ishak’s children.

NexG’s board explained that Hanifah’s suspension is related to an ongoing review in the company’s investments in quoted shares, which it noted recently attracted public attention due to heavy paper losses. It emphasised the suspension of Hanifah’s executive power as an administrative measure intended to safeguard the integrity of the review and does not constitute any determination of wrongdoing.

The board noted the RM145.6 million fair value loss on certain quoted investments, which resulted in its net loss of RM130.88 million for the third quarter ended Dec 31, 2025 (3QFY2026). A committee, assisted by independent third-party professionals, looking into the “appropriateness” of the investments, had been formed in November 2025, it said.

“In light of recent developments that may affect the independence and integrity of the ongoing review process, the board has resolved to temporarily suspend the executive powers and functions of Hanifah to allow the committee and its advisers to continue their work without undue influence and in accordance with the company’s governance procedures and standards operating practices,” NexG said.

According to the filings with Bursa, NexG invested RM88 million to buy 220 million shares or a 9.53% stake in MMAG Holdings Bhd (KL:MMAG) at 40 sen each in March 2025. MMAG’s share price has since dropped 93% to close at three sen on Thursday (March 5). Meanwhile, in August 2025, its 32.61% stake in Classita Holdings Bhd, now NexG Bina Bhd (KL:NEXGBINA), and 414.31 million warrants, bought for RM93.25 million, are now worth RM20.1 million, an 80% loss, with shares at three sen and warrants at one sen.

NexG bought part of the MMAG stake (7.58%) from Chan Swee Ying — the spouse of Victor Chin Boon Long who stepped down as NexG chief operating officer in end-September last year.

Besides, NexG also bought a 51% stake in Innov8tif Holdings Sdn Bhd for RM40 million cash from Revenue Group Bhd in November 2024.

Hanifah, who founded the company formerly known as Datasonic Group Bhd, currently owns a 9.58% interest in NexG. He has come out of retirement twice to lead the company. In his latest stint, he rejoined NexG on August 22, 2024 as its executive deputy chairman and CEO. On Feb 12, 2025, he was redesignated to executive chairman and CEO.

Shares in NexG ended 2.5 sen or 9.26% higher at 29.5 sen on Thursday, valuing the company at RM1.1 billion.

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Raya Airways parent now NexG’s biggest shareholder after taking over two exec-linked firms