A consortium of two Chinese stock exchanges, — Shenzhen Stock Exchange and Shanghai Stock Exchange, leads the race to buy 25 per cent stake of the Dhaka Stock Exchange with around Tk 992 crore to become the strategic partner of the country’s premier bourse.
The DSE board of directors on Tuesday agreed in principle to strike a deal with the Chinese consortium after it submitted bids to become strategic partner of DSE by buying 25 per cent stake on the same day, said officials.
DSE shareholder-director Rakibur Rahman told New Age that the consortium of SZSE and SSE had submitted tender offering Tk 22 per share for the 25 per cent or 45.09 crore shares of the DSE.
According to the demutualisation scheme of the stock exchange, the DSE consists of 180,37,76,500 shares or Tk 1,803.77 crore paid-up capital, considering Tk 10 face value per share of the entities. Out of the total shares, 25 per cent will be sold to strategic partner.
With the premium of Tk 12, DSE is going to receive from the Chinese consortium around Tk 992.07 crore by selling 45.09 crore of shares.
Moreover, the consortium also offered technical support worth $37 million to the bourse, Rakibur said.
On the other hand, another consortium of National Stock Exchange of India, Borsa Stock Exchange, Nasdaq of US and Frontier Bangladesh offered Tk 15 per share for the 25 per cent share of DSE.
They also offered technical support worth of which is less than the Chinese consortium, he said.
‘Therefore, the DSE board agreed in principle to choose the consortium of SZSE and SSE as its strategic partner as they quoted better offer,’ he said.
Another shareholder-director Shakil Rizvi told New Age that they would evaluate the purchase agreement of both of the consortium in the next board meeting to be held in mid February.
‘We will give the final decision on signing agreement with the Chinese consortium next week. The decision will be placed before the Bangladesh Securities and Exchange Commission for final approval,’ he said.
Once the strategic partner is selected, it will choose its representative-director to fill the reserve position in the board of directors of DSE that remained vacant for five years.
During the last five years, BSEC has repeatedly extended the deadline to find out strategic investors and the commission for the last time gave the bourse four months that ends on March 8.
Getting strategic investors within the stipulated time has been a major challenge as it is related to many issues including expected prices, said DSE officials.
The foreign entities as a partner of the bourse will help to ensure the introduction of new products, technological advancement and a professional approach toward management, they said.
Under demutualisation rules of BSEC, through which DSE turned into a demutualised stock exchange on November 21, 2013, a total of 25 per cent shares of the bourse has been kept in a block account for the strategic investors.
Another 35 per cent shares have been set aside for institutional and individual investors, which will be offloaded through initial public offering.
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