The board of directors of Dhaka Stock Exchange at a meeting on Saturday approved the sales of 25 per cent of its stake to a Chinese consortium of Shenzhen Stock Exchange and Shanghai Stock Exchange to make the group its strategic partner.
DSE shareholding director Rakibur Rahman told New Age that after analysing the proposal made by the Chinese group, they had decided to make it their partner.
‘The offer made by the group that includes share prices and technological supports was the best,’ he said.
Rakibur said that the bourse hoped that the group would play a key role in developing the Bangladesh’s stock market and presenting the market in the world platform.
‘We will prepare papers tomorrow (Sunday) and the DSE on Monday will forward the Chinese consortium’s proposal to the Bangladesh Securities and Exchange Commission for the final approval,’ said the DSE director.
Once the strategic partner is approved by the regulator, it will choose its representative-director to fill the reserve position in the board of directors of DSE that has remained vacant for five years.
SZSE and SSE are among the three bourses of China, other being the Hong Kong Stock Exchange.
The market capitalisation of SZSE is around $3.5 trillion and that of SSE is more than $4 trillion, making the two bourses the world’s target exchanges.
Earlier, on February 6, the consortium of SZSE and SSE submitted tender offering Tk 22 a share for 25 per cent, or 45.09 crore, shares of the DSE and the bourse agreed in principle to strike a deal with the consortium on the day.
The consortium also offered technological supports worth $37 million to the bourse.
With the premium of Tk 12 on each share, the DSE is going to receive from the Chinese consortium around Tk 992.07 crore by selling its 45.09 crore shares.
According to the demutualisation scheme of the stock exchange, the DSE consists of 180,37,76,500 shares worth Tk 1,803.77 crore in paid-up capital, considering the face value of Tk 10 a share of the entity.
The Chinese consortium has won the race with a consortium of National Stock Exchange of India, Nasdaq of the USA and Frontier Bangladesh which offered Tk 15 a share for buying 25 per cent stake in the DSE.
DSE officials said the foreign entities as a partner of the bourse would help it ensure the introduction of new products, technological advancement and a professional approach towards management.
Under the demutualisation scheme through which the DSE on November 21, 2013 turned into a demutualised stock exchange, 25 per cent of the DSE’s shares have been kept in a block account for a strategic investor.
Another 35 per cent have been set aside for institutional and individual investors, which will be offloaded through an initial public offering.
The rest 40 per cent are owned by the existing shareholders who are commonly known as stockbrokers and stock dealers.
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