• Sunday, Sep 27, 2020
  • Last Update : 12:13 pm

DSE shareholders approve Chinese consortium proposal for strategic partnership

  • Published at 09:59 pm April 30th, 2018
DSE shareholders approve Chinese consortium proposal for strategic partnership
Shareholders of the demutualized Dhaka Stock Exchange (DSE) have approved the proposal of selling of a 25% share of DSE to a Chinese consortium that wants to become a strategic partner of the country’s premier bourse. DSE shareholders made the approval at an Extraordinary General Meeting (EGM) held in the capital on Monday. Getting approval from the general shareholders is mandatory for selling shares to strategic partners. Soon after declaring the approval from the shareholders, the DSE management submitted the proposal to Bangladesh Securities and Exchange Commission (BSEC) for approval in the afternoon on Monday. A total of 169 out 250 shareholders were present at the EGM and approved the proposal to sell to the consortium of Shenzhen Stock Exchange (SZSE) and Shanghai Stock Exchange (SSE) as the Strategic Investors. Earlier, the Chinese consortium proposed to buy 25% or 450,944,125 ordinary shares at Tk22 each of DSE to be its strategic partners. “It is a landmark decision for the Dhaka Stock Exchange as we are getting two international exchanges in the consortium as our strategic partners,” DSE chairman professor Dr Abul Hashem said in his speech at the EGM. “It is the result of our vigorous efforts to find an experienced and qualified partner. I think, the partners will be able to add value to the stock market,” he added. According to a special committee formed by the BSEC, the offer of strategic partnership and the share purchasing agreement should both be approved by general shareholders before submission [to the commission] for final approval. Thus, the DSE Board held the EGM on Monday to get the shareholders’ consent for the board’s approval of the offer. Among the headline proposals of the estimated $37 million project, the Chinese consortium is offering to develop a SME market, assist in product diversification, and jointly operate the V-Next alliance program in Bangladesh. It also proposes to assist the DSE in mapping information disclosure and investor service automation framework, developing human resources, and providing technological support with a view to developing the DSE portfolio.

Approval from the regulator

The management of the DSE already placed the decision to the Bangladesh Securities and Exchange Commission on Monday for the final approval. DSE and BSEC official said it may be approved this week. “Since the DSE issue of selecting strategic partners has been approved by the shareholders at the EGM, there is no legal obstacle in approving the proposal,” seeking anonymity a BSEC official told the Dhaka Tribune. After getting the approval, the DSE will have to sign a Share Purchase Agreement (SPA) with the Chinese consortium to complete the process of strategic partnership with the consortium.

What the Chinese consortium offers

In response to the DSE’s offer, the Chinese consortium and the NSE placed their proposals to buy 25% shares of the DSE and become a strategic investor. In their proposal, the Chinese consortium proposed to buy 450 million or 25% shares of the DSE at a rate of Tk22 each. It also offered technical support of Tk307 crore and asked for a seat on the board, adding that it would not seek any return on its investment for a period of 10 years. On the other hand, NSE offered Tk15 per share for the same number of shares and demanded two seats on the DSE board. The Indian body did offer technical support, but did not specify how much money it would spend. In addition to the financial offering, the Chinese consortium is offering to develop a SME market, assistance in product diversification, and jointly operate the V-Next alliance program in Bangladesh. It also proposes to assist the DSE in mapping information disclosure and investor service automation framework, developing human resources, and providing technological support with a view to developing the DSE portfolio. “As experienced operators of two of the world’s leading stock exchanges, SZSE and SSE have been instrumental in shaping the landscape of China’s rapidly growing capital markets,” DSE Managing Director KAM Majedur Rahman told the Dhaka Tribune. “We believe the Bangladesh economy shares a similar trajectory (to that of China) and the experience and technical know how we have accumulated over the years will enable us to assist DSE most appropriately in coping with the challenges and opportunities in its next stage of growth,” he added.
51
50
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail