DSE STRATEGIC INVESTOR

BB okays NITA for Chinese group to send Tk 947cr to Bangladesh

Staff Correspondent | Published: 22:50, Aug 27,2018

 
 

A file photo shows the Dhaka Stock Exchange building in the city. Bangladesh Bank has approved the Dhaka Stock Exchange’s proposal for non-resident investors taka account in favour of a Chinese consortium so that the corsortium can transfer Tk 947 crore to Bangladesh to buy DSE shares. — New Age photo

Bangladesh Bank has approved the Dhaka Stock Exchange’s proposal for non-resident investors taka account in favour of a Chinese consortium so that the corsortium can transfer Tk 947 crore to Bangladesh to buy DSE shares.
In accordance with the share purchasing agreement, the consortium would transfer Tk 947 crore against 45,09,44,125 ordinary shares of the DSE at Tk 21 each to be the bourse’s strategic investor, DSE offiicals said.
The consortium has also got approval from China’s National Development and Reform Commission, State Administration of Foreign Exchange and China Securities Regulatory Commission to send the fund to Bangladesh, they said.
Now, a number of formalities including opening of a beneficiary owners’ account with Central Depository Bangladesh Limited in favour of the corsortium, transferring the DSE shares to the Registrar of Joint Stock Companies and Firms in favour of the consortium and receiving fund from the consortium, the officials said.
The DSE officials said that the procedures were expected to be settled within the first week of September after representitives of the consortium arived in Dhaka.
The fund would be sent to Standard Chartered Bank, which later would be distributed to DSE shareholders’ accounts with City Bank.
The DSE shareholders hope that the government would exempt the 15 per cent gain tax levied on share sales while the National Board of Revenue and the finance ministry remain mum over the matter, the officials said.
Earlier, on May 14, DSE, Shenzhen Stock Exchange and Shanghai Stock Exchange signed the share purchase 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 Chinese consortium offered technical assistance worth over $37 million to the DSE and the BSEC asked the bourse to evaluate technical and financial offers of the group for the interest of the country’s capital market.
The regulator asked the parties to follow securities laws and other relevant laws including Demutualisation Act 2013 and Dhaka Stock Exchange demutualisation scheme in their activities related to the share sales.
The commission also asked the stock exchange to submit a report within one year after signing and implementation of the agreement.

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