Chinese group awaits BB nod for NITA to send Tk 947cr to B’desh

Mostafizur Rahman | Published at 10:19pm on August 24, 2018

The Chinese consortium of Shenzhen and Shanghai stock exchanges awaits Bangladesh Bank’s approval for non-resident investors taka account to send money to Bangladesh for buying 25 per cent shares of the Dhaka Stock Exchange to be the bourse’s strategic investor, said DSE managing director KAM Majedur Rahman.
Majedur told New Age that the consortium was ready to transfer Tk 947 crore to the City Bank of Bangladesh against 45,09,44,125 ordinary shares of the DSE at Tk 21 each in accordance with the share purchasing agreement.
He said that the consortium got approval from China’s National Development and Reform Commission, State Administration of Foreign Exchange and China Securities Regulatory Commission to transfer the funds.
‘We expect that we will get the BB approval very soon. As soon as we get the BB nod, we will transfer the shares to the Registrar of Joint Stock Companies and Firms after opening a beneficiary owners’ account in favour of the consortium and at the same time the consortium will send the money to our bank account,’ he said.
A number of DSE officials said that they received ‘information informally’ that the central bank had already approved their appeal in favour of the Chinese consortium and was likely to send the approval letter tomorrow and the issue would be settled within the first week of September this year.
Majedur also said once the fund was deposited in the City Bank, the fund would be automatically allotted to the bank account of DSE shareholders and to the government exchequer as gain tax levied on them.
He, however, expected that the government would exempt the 15 per cent gain tax soon for the interest of the capital market development.
A number of DSE officials, however, expressed doubt about the tax waiver and said that each of the shareholders was likely to pay Tk 30 lakh in tax for the sales.
The NITA is required for the foreign exchange transfer of any listed company. As the DSE is not a listed entity, it requires the BB approval for opening NITA in favour of the Chinese group.
DSE officials expected that the bourse would be listed in a couple of years.
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 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 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 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 signing and implementation of the agreement.