Finance minister AMA Muhith on Monday said that the Dhaka Stock Exchange’s partnership with a Chinese consortium of Shenzhen and Shanghai stock exchanges would be an important factor for Bangladesh economy.
Muhith said that Monday was a red-letter day for the DSE as the country’s premier bourse signed a strategic partnership agreement with the Chinese consortium to sell 25 per cent of its stake to the group.
DSE managing director KAM Majedur Rahman, Shenzhen Stock Exchange president Wang Jianjun and Shanghai Stock Exchange supervisory board chair Pan Xuexian signed the agreement at the Le Meridien Hotel in Dhaka.
Muhith attended the programme as the chief guest while Bangladesh Securities and Exchange Commission chairman M Khairul Hossain was present as the special guest.
The finance minister said that the Chinese consortium would think that they had entered into a good partnership with the country whose capital market was just getting organised and established.
The finance ministry also asked the officials of DSE to follow the footprints of Chinese market development
path to develop the country’s capital market.
The BSEC chairman said, ‘We expect that the strategic partner will contribute significantly to the Bangladesh capital market development as the Chinese bourses developed significantly despite their opening in 1990.’
Wang Jianjun said that as a strategic investor in the DSE, the Chinese consortium would jointly promote the development of the Bangladesh capital market with other DSE shareholders, the market regulator and market participants.
‘We hope to enhance business and technology cooperation through equity cooperation, provide channels for cross-border capital formation between the two countries,’ he said.
He said, ‘The Chinese consortium will strictly abide by the laws and regulations of Bangladesh, fully respect other shareholders and partners, conscientiously fulfil its shareholders’ obligations, and participate in the corporate governance of the DSE.’
‘In development of the capital market, we will make the DSE cooperation project a successful model in emerging capital market.’
The DSE signed the agreement after the BSEC on May 3 approved the bourse’s proposal for selling 25 per cent of its shares for Tk 947 crore to the Chinese consortium for making it the strategic investor of the bourse, ending three months of uncertainty over the issue.
The BSEC approved the SPA as the DSE shareholders at an extraordinary general meeting approved the offer and share purchasing agreement of the group after making necessary amendments as per the commission’s directions.
The DSE will submit a signed copy of the agreement to the market regulator within seven days as per the commission’s conditions.
The DSE will have to evaluate technical and financial offers of the group for the interest of the country’s capital market, as the bourse did not evaluate the offers before the EGM, a BSEC official said.
The Chinese consortium offered technical assistance worth over $37 million to the DSE.
As per the commission’s approval of the share purchase agreement, the bourse will sell 45.09 crore shares or 25 per cent of the total stake for Tk 21 per share to the consortium.
The regulator asked the parties to follow laws on securities and other relevant laws including demutualisation act 2013 and Dhaka Stock Exchange demutualisation scheme in their activities related to the share sales.
The commission further asked the stock exchange to submit a report in one year after the signing and implementation of the agreement.
No terms and conditions and other issues of the agreement can be omitted without the commission’s permission, it said.
There are some formalities left to be fulfilled including opening of beneficiary owners’ account in favour of the consortium, getting approval from the Bangladesh Investment Development Authority, share transfer to the group and filing appeal with the Registrar of Joint Stock Companies and Firms.
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