Dhaka Stock Exchange (DSE) has decided to sell 25% of its shares to a consortium of the Shanghai Stock Exchange (SSE) and the Shenzhen Stock Exchange (SZSE), considering it a strategic investor.
The DSE board of directors in a meeting on Monday unanimously made the decision to sell the shares to the China consortium as part of its demutualization scheme, DSE Managing Director K A M Majedur Rahman told journalists after a meeting at his office on Monday.
The proposal will be placed to the Bangladesh Securities and Exchange Commission (BSEC) for approval within a day or two, he added.
It was reported earlier that DSE management was allegedly pressured by the stock market regulator to award the opportunity to the National Stock Exchange (NSE) of India, which offered a lower price than the Chinese consortium.
In response to a DSE offer, the Chinese consortium and the NSE placed their proposals to buy 25% shares of the DSE and become a strategic investor.
In its proposal, the Chinese consortium proposed to buy 450 million or 25% shares of the DSE at a rate of Tk22 each.
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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 it did not clarify how much money it would spend.
Considering it the best offer in terms of value and technical support, the board unanimously chose the Chinese consortium.
Moreover, the NSE failed to show whether they had received approval from the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India, which are necessary to transfer funds to Bangladesh, a source at DSE said.