• Wednesday, Nov 14, 2018
  • Last Update : 08:39 am

Chinese consortium enters into DSE board Tuesday

  • Published at 10:46 pm September 3rd, 2018
DSE
Mehedi Hasan/Dhaka Tribune

According to the Share Purchase Agreement (SPA), the consortium will hold 25% - equivalent to 450,944,125 ordinary shares - of DSE at Tk21 each in order to partner with the bourse

The board of directors of the Dhaka Stock Exchange (DSE) will formally accept a new member today after a Chinese consortium acquired 25% of the shares in the country’s premier bourse yesterday.

The move follows the signing of a memorandum of understanding by DSE and Shenzhen Stock Exchange and Shanghai Stock Exchange on May 14 to make the Chinese consortium the strategic partner of the bourse.

As part of the deal, the consortium transferred Tk947 crore to DSE yesterday.

“The fund will be deposited in the DSE’s City Bank account, but the shareholders will get their money later,” DSE managing director KAM Majedur Rahman said. 

According to the Share Purchase Agreement (SPA), the consortium will hold 25% - equivalent to 450,944,125 ordinary shares - of DSE at Tk21 each in order to partner with the bourse.

Today, DSE management will transfer the shares to the consortium Beneficiary Owners (BO) Account. For this, Bangladesh Bank recently gave its approval to the consortium to open a Non Resident Investors Taka Account (NITA account) with Standard Chartered Bank.

The consortium has offered about Tk300 crore on top of the initial Tk947 crore, for infrastructural and technological development.

In addition, they have proposed to develop the SME market, assist in product diversification, and jointly operate the V-Next alliance program in Bangladesh.

After the shares acquisition process is completed today, the DSE will hold a board meeting at which Xie Wenhai, the head of the IT management committee of Shenzhen Stock Exchange, will join the board as a director.

The DSE board with its new member will then hold a press conference at the Pan Pacific Sonargaon Hotel to brief the media about the next course of action.

According to the Stock Exchange Demutualization Act 2013, 40% of the shares of the DSE were credited to the DSE members’ accounts, while the remaining 60% are kept in a blocked account. 

After selling 25% of its shares from the blocked account to the strategic investor, the bourse would float the remaining 35% through an initial public offering (IPO).