The Chinese consortium of Shenzhen and Shanghai stock exchanges will complete the purchase of 25 per cent shares of the Dhaka Stock Exchange on September 4 to be the strategic partner of the DSE, said DSE officials on Thursday.
They said the consortium would begin its official activities as a strategic partner of the DSE on the same day with holding a directorship post in the bourse’s board.
The DSE will hold a press conference at the Pan Pacific Sonargaon Hotel in Dhaka on September 4 to declare the consortium as its strategic investor, the officials said.
Representatives from both of the Chinese stock exchanges are expected to attend the press briefing.
DSE director Minhaz Mannan Emon told New Age that the consortium would transfer Tk 947 crore to a bank in Bangladesh on September 3 after transferring 25 per cent shares by the bourse to a beneficiary owners’ account to be opened with the Central Depository Bangladesh Limited in favour of the group on the same day.
The fund would be deposited in the DSE’s City Bank account on September 4, but the shareholders would get their money later, he said.
DSE managing director Majedur Rahman said that the DSE would hold a board of director meeting on September 4 where Xie Wenhai, head of IT management committee of Shenzhen Stock Exchange, would be officially appointed as director to the board of the DSE.
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 got the nod from China’s National Development and Reform Commission, State Administration of Foreign Exchange and China Securities Regulatory Commission to send the fund to Bangladesh.
DSE shareholders expected 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.
Bangladesh Bank has recently approved the DSE’s proposal for non-resident investors taka account in favour of the Chinese consortium to facilitate the fund transfer.
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.
The sales of strategic shares come five years after the stock exchange was demutualised — to separate the ownership from management.
Forty per cent of the shares of the exchange were credited to the DSE members’ accounts, while the remaining 60 per cent are kept in a blocked account. After selling 25 per cent of its shares from the blocked account to the strategic investor, the bourse would float the remaining 35 per cent through an initial public offering.