Bangladesh's DSE approves China's bid; rejects India's offer
PTI|
Feb 20, 2018, 07.50 PM IST
DHAKA: Bangladesh has said it will sell 25 per cent stakes in the Dhaka Stock Exchange (DSE) to a Chinese consortium, rejecting a rival bid from India's National Stock Exchange, Nasdaq of the US and others.
Bangladesh's premier bourse directors had decided to accept the Chinese consortium's proposal on February 10 as it looked acceptable to them considering financial and technological aspects, bdnews24 reported today.
They gave the final nod to the proposal by the consortium of Shenzhen Stock Exchange and Shanghai Stock Exchange at a meeting of the board last evening, the DSE Managing Director KAM Majedur Rahman told reporters here.
They would "soon" send the proposal to the regulators, the Securities and Exchange Commission or SEC, for endorsement, he added.
Shanghai and Shenzhen stock exchanges are among the top bourses in the world boasting $3.5 trillion and $ 2.2 trillion market capital, respectively.
The market capital of the DSE is over $51.42 billion.
Another consortium of India's National Stock Exchange, Frontier Bangladesh and Nasdaq stock market of the US took part in the bidding to become the DSE's partners.
A DSE official earlier said that the Mumbai-based National Stock Exchange had offered 15 taka ($0.18) per share to buy 25.1 per cent shares of the DSE.
Officials said the Chinese consortium has proposed buying 25 per cent stakes into the DSE for Tk 9.9 billion ($122 million) at Tk 22 per share. In its proposal, the consortium mentioned it will spend over Tk 3 billion ($37 million) to give the DSE a technological upgrade.
The DSE is trying to lure foreign investment as part of its demutualisation process to get technical and technological support from the strategic partners to further modernise the exchange.
Bangladesh's premier bourse directors had decided to accept the Chinese consortium's proposal on February 10 as it looked acceptable to them considering financial and technological aspects, bdnews24 reported today.
They gave the final nod to the proposal by the consortium of Shenzhen Stock Exchange and Shanghai Stock Exchange at a meeting of the board last evening, the DSE Managing Director KAM Majedur Rahman told reporters here.
They would "soon" send the proposal to the regulators, the Securities and Exchange Commission or SEC, for endorsement, he added.
Shanghai and Shenzhen stock exchanges are among the top bourses in the world boasting $3.5 trillion and $ 2.2 trillion market capital, respectively.
The market capital of the DSE is over $51.42 billion.
Another consortium of India's National Stock Exchange, Frontier Bangladesh and Nasdaq stock market of the US took part in the bidding to become the DSE's partners.
A DSE official earlier said that the Mumbai-based National Stock Exchange had offered 15 taka ($0.18) per share to buy 25.1 per cent shares of the DSE.
Officials said the Chinese consortium has proposed buying 25 per cent stakes into the DSE for Tk 9.9 billion ($122 million) at Tk 22 per share. In its proposal, the consortium mentioned it will spend over Tk 3 billion ($37 million) to give the DSE a technological upgrade.
The DSE is trying to lure foreign investment as part of its demutualisation process to get technical and technological support from the strategic partners to further modernise the exchange.
