KUALA LUMPUR (Aug 9): Datasonic Group Bhd is partnering Bahraini company Dynamic Structures WLL (DSWLL) to expand its security business internationally in 18 countries in the Middle East and North Africa (MENA) region.

In a bourse filing today, Datasonic said it had entered into a five-year exclusive agency agreement with DSWLL to jointly develop and coordinate business activities of secure identification, personalisation solution, integrated security and surveillance system. It will also establish a legal presence via an official regional office to undertake all its activities.

In accordance to the agreement, DSWLL will assist Datasonic to obtain the necessary licences, permits, and registrations which are required to commence operations in the following countries: the Kingdom of Bahrain, the Kingdom of Saudi Arabia, Qatar, Kuwait, UAE, Oman, Yemen, Iraq, Syria, Lebanon, Turkey, Egypt, Sudan, Djibouti, Libya, Morocco, Algeria, and Tunisia.

Additionally, Datasonic will be providing full funding to set up a regional office as well as the rental of an office, the company's registration fees and the salary of a representative of the branch office for these countries.

While the agreement is not expected to see any contribution for the financial year ending March 31, 2019, subject to the successful bidding of project(s) in the said countries, Datasonic noted that the agreement is expected to contribute positively towards the group's future earnings.

Both parties can mutually agree to extend or terminate the agreement by giving one month's prior notice.

Datasonic rose three sen or 3.77% to close at 82.5 sen for a market capitalisation of RM1.11 billion. Some 4.11 million shares were traded.